LEGAL PROCESSING DIVISION PUBLICATION & REGULATION, BRANCH May 1, 2013 Courier's Desk Internal Revenue Service Attn: CC:PA:LPD:PR (Notice 2013.22) 1111 Constitution Avenue, N.W. Washington, D.C. 20224 VIA EMAIL: Notice Commentsarscounseftreas coy Re: Recommendations for 2013-2014 Guidance Priority List (Notice 2013-22) Treatment of Leasing Activity Under I.R.C. § 280F(b) Dear Sir and/or Madam taxanalivsts DOCUMENT SERVICE Doc 201119374 (7 pgs) A C NBRR This letter is submitted by the National Business Aviation Association (NBAA") in response to the invitation published In Notice 2013.22 for recommendation of items for inclusion on the 2013-2014 Guidance Priority List. NBAA represents more than 9,000 member companies and is the leading organization for companies that own or operate general aviation aircraft to make their businesses more efficient, productive and successful. For the reasons discussed oelow, we respectfully request that the Internal Revenue Service ("Service') review the treatment in TAM 200945037' of leasing aircraft to 5-percent owners and related parties under the depreciation limitation in I R.C. § 280F(b) and provide administrative guidance as described below. In addition to this letter, we are including an explanation of why Treasury and the IRS are not barred from implementing a "look-through" approach with regard the treatment of leasing activity under I.R.C. § 280F(b) (Enclosure 1), and a description of ;My businesses lease aircraft (Enclosure 2). Background Recordings Depreciation Class Lives and Recovery Periods of Aircraft Revenue Procedure 87-562 sets forth the class lives of property that are necessary to compute the depreciation al ovrances availabe under I.R.C. § 168 The revenue procedure specifies class lives and recovery periods for MACRS property subject to depreciation under the general depreciation system ("GDS') provided in I.R.C. § 168(a) or the alternative depreciation system CADS") provided In