L.L. Bean, Inc., Leon Gorman, Tax Matters Person - Page 28

                                       - 28 -                                         
               or clubhouse.  * * *  [H. Rept. 1447, 87th Cong., 2d                   
               Sess. (1962), 1962-3 C.B. 405, 516; emphasis added.]                   

               In light of Congress' expressed intentions, and because we             
          find that the Reserve Facility functions essentially as a                   
          warehouse and the human activity involved therein is not merely             
          incidental, we hold that the Reserve Facility is a building.                
               Petitioner contends that even if the Reserve Facility                  
          resembles a building and functions as a building, it is not an              
          improvement to land because it is movable.  In cases involving              
          the issue of movability, we have approached the question of                 
          whether the property was tangible personal property by                      
          determining whether the structure was "inherently permanent".               
          Moore v. Commissioner, 58 T.C. 1045, 1052 (1972), affd. 489 F.2d            
          285 (5th Cir. 1973); Fox Photo, Inc. v. Commissioner, T.C. Memo.            
          1990-348.  Whether property is inherently permanent depends upon            
          the fashion in which it is affixed to the land and whether it is            
          designed to remain permanently in place.  Everhart v.                       
          Commissioner, 61 T.C. 328, 330 (1973).  In making our                       
          determination as to whether the Reserve Facility is inherently              
          permanent, we shall consider the six-part test articulated in               
          Whiteco Industries, Inc. v. Commissioner, 65 T.C. 664, 672-673              
          (1975):                                                                     

                    (1)  Is the property capable of being moved, and                  
               has it in fact been moved?  * * *                                      






Page:  Previous  18  19  20  21  22  23  24  25  26  27  28  29  30  31  32  33  34  35  36  37  Next

Last modified: May 25, 2011