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We conclude for the reasons discussed supra relating to the
branch electrical systems that the branch wiring in the subject
category constitutes assets accessory to the conduct of
petitioners' healthcare business within the meaning of S. Rept.
1881 supra, 1962-3 C.B. at 722. The disputed property items in
the subject category do not relate to the operation or
maintenance of the buildings. Consequently, we hold that the
wiring and related property in Property Unit 2340 constitute
tangible personal property, depreciable over a 5-year recovery
period.
4-5. Conduit, Floor Boxes, Power Boxes and Outlet Jacks
Relating to Telephone Equipment and Electrical Wiring,
Conduit, and Connections Relating to Internal
Communications Equipment
The telephone equipment in the subject categories (Property
Unit 2330) includes conduit installed specifically to house the
telephone wiring, telephone floor boxes, telephone power boxes,
and telephone outlet jacks, which cannot be used for any purpose
other than as a connection point for petitioners' telephones.
See supra p. 17. Respondent agrees that those items are required
for the use and operation of the telephones in petitioners'
hospitals and, during the years in issue, were used only with the
telephones and telephone equipment located in the hospitals.
The internal communications equipment in dispute (Property
Unit 3090) consists of wiring and conduit, junction boxes,
outlets, and sleeves that are necessary for the operation of the
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