- 107 -
that decorative lattice millwork in the taxpayers' restaurants,
which served to separate the customer serving line from the
dining portions of the cafeteria and which was not used to
provide structural support for the cafeteria's ceiling, was
personal property because "The lattice millwork could easily be
removed without permanently damaging the underlying ceiling or
walls". Morrison, Inc. v. Commissioner, supra.
We are persuaded that the partitions in the subject category
are not inherently permanent. The partitions are designed to
subdivide cafeterias and conference rooms into smaller eating or
meeting space. They provide no structural support for the
ceilings or walls. The partitions are capable of being moved,
and have been removed, without damage to the building or to the
partitions. Their removal would not affect the operation or
maintenance of the buildings. The partitions have no more than
an "incidental relationship" to the overall operation or
maintenance of the buildings. Morrison, Inc. v. Commissioner,
supra; S. Rept. 95-1263 supra, 1978-3 C.B. (Vol. 1) at 415. But
cf. Texas Instruments, Inc. v. Commissioner, T.C. Memo. 1992-306
(window walls were structural components); L.L. Bean, Inc. v.
Commissioner, T.C. Memo. 1997-175 (storage rack systems were
structural components).
Accordingly, we hold that the partitions are personal
property, and that they have a 5-year recovery period.
Page: Previous 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 NextLast modified: May 25, 2011