- 62 -
Cir. 1981). The fact that an item is not readily reusable in
another location is evidence supporting the conclusion that it is
to be treated as permanent in its present location.
Mallinckrodt, Inc. v. Commissioner, 778 F.2d 402, 403 (8th Cir.
1985), affg. per curiam T.C. Memo. 1984-532.
Structural Components
Section 1.48-1(e)(2), Income Tax Regs., explains the meaning
of "structural components" by way of example rather than by
definition as follows:
(2) The term "structural components" includes such
parts of a building as walls, partitions, floors, and
ceilings, as well as any permanent coverings therefor such
as panelling or tiling; windows and doors; all components
(whether in, on, or adjacent to the building) of a central
air conditioning or heating system, including motors,
compressors, pipes and ducts; plumbing and plumbing
fixtures, such as sinks and bathtubs; electric wiring and
lighting fixtures; chimneys; stairs, escalators, and
elevators, including all components thereof; sprinkler
systems; fire escapes; and other components relating to the
operation or maintenance of a building. However, the term
"structural components" does not include machinery the sole
justification for the installation of which is the fact that
such machinery is required to meet temperature or humidity
requirements which are essential for the operation of other
machinery or the processing of materials or foodstuffs.
Accordingly, an item constitutes a structural component of a
building if the item relates to the operation and maintenance of
the building. Sec. 1.48-1(e)(2), Income Tax Regs. The "sole
justification" test set forth in section 1.48-1(e)(1), Income Tax
Regs., excludes from the term "structural component" only
machinery that is required to meet the temperature and humidity
Page: Previous 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 NextLast modified: May 25, 2011