§11812

ffect for the years at issue is Re . Proc. 87-56, 1987-2 C.B. 674. The stated purpose ofRev. Proc. 87-56 is "to set forth the class ° Congress repealed section 167(m) in 1990, see Omnibus Budget ReconciliationAct of 1990 (OBRA), Pub. L. No. 101-508, sec. 11812(a)(1), 104 Stat. at 1388-534, but section 168(i)(1) still incorporates that sec(cid:16)040ionp'sre-repeal language and treats the taxpayer as ifit elected to have that sectión apply. Before the repeal, section 167(m) essentially codified t

0.0, consisting of depreciable assets used in specific business activities (the activity category). The asset category takes priority over the 'Sec. 167(m) was deleted from the Code by the Omnibus Budget Reconciliation Act of 1990, Pub. L. 101-508, sec. 11812(a) (1), 104 Stat. 1388-534. Sec. 167(m) essentially codified the Asset Depreciation Range system described in sec. 1.167(a)-11, Income Tax Regs., and in particular the system of asset guideline classes and periods found there. See H. Rept.

Consistent with the directive in section 167(m)(1) to prescribe class lives for depreciable assets, section 1.167(a)- 11(b)(4)(ii), Income Tax Regs., provides that asset guideline classes and periods (lives) will be “established, supplemented, and revised * * *, and will be published in the Internal Revenue Bulletin.” The regulation references Rev.

wed by the Court. Cohen, Gerber, Ruwe, Whalen, Colvin, Chiechi, Laro, Gale, and Thornton, JJ., agree with the majority opinion. Sec. 167(m) was deleted from the Internal Revenue Code by the Omnibus Budget Reconciliation Act of 1990, Pub. L. 101-508, sec. 11812(a)(1), 104 Stat. 1388-534. A notice of proposed rulemaldng was pubbshed in the Federal Register on Mar. 13, 1971, 36 Fed. Reg. 4885, and a Treasury Decision setting forth final regulations was published in the Federal Register on June 23,

s aircraft parts. On brief, petitioners do not advance that argument. We therefore presume that petitioners have abandoned their position at trial under sec. 165. See Rybak v. Commissioner, 91 T.C. 524, 566 n.19 (1988). - 7 - 1990, Pub. L. 101-508, sec. 11812(a), 104 Stat. 1388, 1388-534 (former section 167(m)). Former section 167(m) permitted depre- ciation deductions to be determined with respect to a depreciable asset on the basis of a class life prescribed for such asset by the Secretary of

more, but less than 25 years, and 20-year property as property having a class life of 25 or more years. "Class life", as defined by section 168(i)(1), is determined by reference to former section 167(m), as in effect prior to its repeal by the OBRA sec. 11812(a), 104 Stat. 1388-534. Section 167(m) provided for a depreciation allowance based upon the class life prescribed by the Secretary of the Treasury or his delegate. - 24 - The class lives of depreciable assets can be found in a series of re

cumstances, we conclude that petitioners were permitted to ignore such salvage value in determining the depreciation deduction for their property. Sec. 167(f) (before repeal in 1990 by the Omnibus Budget Reconciliation Act of 1990, Pub. L. 101- 508, sec. 11812(a)(1) and (2), 104 Stat. 1388, 1388-534); sec. 1.167(f)-1, Income Tax Regs. In Bailey v. Commissioner, 90 T.C. 558, 620 (1988), affd. in part, vacated in part and remanded 912 F.2d 44 (2d Cir. 1990), we stated, in discussing the applicatio

e of 10 years or more, but less than 16 'years. "Class life", as defined by section 168(i)(1), is determined by reference to former section 167(m), as in effect prior to its repeal by the Omnibus Budget Reconciliation Act of . 1990, Pub. L. 101-508, sec. 11812(a), 104 Stat. 1388, 1388-534. Section 167(m) provided for a depreciation allowance based upon the class life prescribed by the Secretary of the Treasury or his delegate. The class lives of depreciable assets can be found in - 79 - a series

life of 10 years or more, but less than 16 years. “Class life”, as defined by section 168(i)(1), is determined by reference to former section 167(m), as in effect prior to its repeal by the Omnibus Budget Reconciliation Act of 1990, Pub. L. 101-508, sec. 11812(a), 104 Stat. 1388, 1388-534. Section 167(m) provided for a depreciation allowance based upon the class life prescribed by the Secretary of the Treasury or his delegate. The class lives of depreciable assets can be found in a series of rev

life of 10 years or more, but less than 16 years. “Class life”, as defined by section 168(i)(1), is determined by reference to former section 167(m), as in effect prior to its repeal by the Omnibus Budget Reconciliation Act of 1990, Pub. L. 101-508, sec. 11812(a), 104 Stat. 1388, 1388-534. Section 167(m) provided for a depreciation allowance based upon the class life prescribed by the Secretary of the Treasury or his delegate. The class lives of depreciable assets can be found in a series of rev

necessarily prepared contemporaneously with the purchase of the equipment. No receipts or other independent 1This is the section in effect for property placed into service during 1987, 1988, and 1989. The section was later renumbered sec. 167(c) by sec. 11812(a)(1) and (2) of the Omnibus Budget Reconciliation Act of 1990, Pub. L. 101-508, 104 Stat. 1388, 1388-534, for property placed into service after November 5, 1990. - 9 - evidence of the purchase or of the cost of these items was received i

reasonably reflects the anticipated useful life of that class of property to a particular industry or other group. Sec. 167(m); 23 Sec. 167(m) was repealed as an obsolete provision by the Omnibus Budget Reconciliation Act of 1990, Pub. L. 101-508, sec. 11812, 104 Stat. 1389-534. Prior to its repeal, sec. 167(m) provided as follows: SEC. 167(m) Class Lives.-- (1) In General.--In the case of a taxpayer who has made an election under this subsection for the taxable year, the term "reasonable allow

reasonably reflects the anticipated useful life of that class of property to a particular industry or other group. Sec. 167(m); 23 Sec. 167(m) was repealed as an obsolete provision by the Omnibus Budget Reconciliation Act of 1990, Pub. L. 101-508, sec. 11812, 104 Stat. 1389-534. Prior to its repeal, sec. 167(m) provided as follows: SEC. 167(m) Class Lives.-- (1) In General.--In the case of a taxpayer who has made an election under this subsection for the taxable year, the term "reasonable allow

ose of determining gain on the sale or other disposition of such property." Sec. 167(g).9 In the instant case, petitioner's 9 This is the section in effect for property placed into service during 1989. The section was later renumbered sec. 167(c) by sec. 11812(a)(1)and (2)of the Omnibus Budget Reconciliation Act of 1990, Pub. L. 101-508, 104 Stat. 1388, 1388-534, for property placed into service after Nov. 5, 1990. - 17 - basis is the cost of constructing the J car. Secs. 1011, 1012, 1016. Petit