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Petitioners contend that the acoustical ceilings are not
structural components of petitioners' hospital buildings, but
constitute section 1245 class property, depreciable over 5-year
periods. Petitioners assert that the acoustical ceilings serve
needs peculiar to the operation of their hospital businesses
because they prevent dust and dirt particles that accumulate on
the duct work and pipes located between the acoustical ceilings
and the structural ceilings of petitioners' hospitals from
falling into the areas below, and that they also absorb sound.
Respondent contends that the acoustical ceilings are
structural components. Respondent maintains that the acoustical
ceilings are virtually identical to the acoustical ceilings
involved in Metro Natl. Corp. v. Commissioner, T.C. Memo. 1987-
38, and Texas Instruments, Inc. v. Commissioner, supra, which we
found constituted structural components.
Section 1.48-1(e)(2), Income Tax Regs., includes ceilings as
examples of structural components. We recognized in Morrison,
Inc. v. Commissioner, supra, however, that the reference to
ceilings in the regulation means inherently permanent ceilings.
Petitioners contend that, because the acoustical ceilings in
those cases did not serve the taxpayer's particular business
needs, the facts in the instant case are distinguishable from
those involved in Metro Natl. Corp. v. Commissioner, supra, and
Texas Instruments, Inc. v. Commissioner, T.C. Memo. 1992-306.
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