- 23 - any structure or edifice enclosing a space within its walls, and usually covered by a roof, the purpose of which is, for example, to provide shelter or housing, or to provide working, office, parking, display, or sales space. The term includes, for example, structures such as apartment houses, factory and office buildings, warehouses, barns, garages, railway or bus stations, and stores. * * * [Sec. 1.48-1(e)(1), Income Tax Regs.] In determining whether a structure is a building for purposes of the ITC, the regulations and the case law examine both the appearance and the function of the structure. Munford, Inc. v. Commissioner, supra at 479. The appearance test, whether the structure looks like a building, generally requires a structure enclosing a space within its walls and covered by a roof. Sec. 1.48-1(e)(1), Income Tax Regs. A. Reserve Facility We have examined photographs, blueprints, and videotapes of the Reserve Facility and have considered the testimony of the witnesses. The Reserve Facility is a structure of substantial dimensions that encloses space10 surrounded by walls and covered by a roof. See Yellow Freight Sys., Inc. v. United States, 538 F.2d 790, 796 (8th Cir. 1976); Munford, Inc. v. Commissioner, 10Petitioner argues that the Reserve Facility does not enclose space, but, rather, encloses almost nothing except for the storage rack system. This argument ignores the obvious purpose for the racks; i.e., to allow petitioner to use the space within the Reserve Facility for the storage of its merchandise.Page: Previous 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 Next
Last modified: May 25, 2011