L.L. Bean, Inc., Leon Gorman, Tax Matters Person - Page 38

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               Here, we have previously determined that the storage rack              
          system does not function as part of a machine.  Additionally, we            
          find that the storage rack system provides more than a mere                 
          "incidental" structural support function.  Even if structural               
          support is not the "primary" function of the racks, it is                   
          certainly more than "incidental" to their other functions.                  
               Moreover, the storage rack system is a permanent part of the           
          Reserve Facility.  It is the main structural support for the                
          Reserve Facility, a structure that we have already found to be              
          inherently permanent.  Without the storage rack system, the roof            
          and most of the walls of the Reserve Facility would collapse.               
          Therefore, we find that the storage rack system is an inherently            
          permanent structural component of the Reserve Facility and does             
          not qualify as section 38 property.                                         

               2.  Concrete Slab Floor                                                

               Petitioner maintains that the concrete slab floor is also an           
          item of machinery because it was specially designed to support              
          the storage rack system and the transtackers.  In support of this           
          argument, petitioner again relies upon Rev. Rul. 79-183, supra,             
          and Rev. Rul. 79-181, supra, in addition to our determination in            
          Texas Instruments, Inc. v. Commissioner, T.C. Memo. 1992-306,               
          where we held that a specially designed floor was essential to              
          the operation of the taxpayer's machinery, notwithstanding the              
          fact that part of the floor was used for activities that did not            




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