- 41 -
whether property is a building, regardless of whether the
ultimate issue is whether the property qualifies under section
48(a)(1)(A) or (B). Petitioner relies upon L&B Corp. v.
Commissioner, 88 T.C. 744, 760-761 (1987), revd. on other grounds
862 F.2d 667 (8th Cir. 1988), and Munford, Inc. v. Commissioner,
87 T.C. at 478 n.9, in support of this argument. Although these
cases hold that the general definition of the term "building" is
similar under section 48(a)(1)(A) and (B), the exception provided
by section 1.48-1(e)(1)(ii), Income Tax Regs., specifically
requires that the structure house property which is used as an
integral part of an activity specified in section 48(a)(1)(B)(i).
Neither L&B Corp. nor Munford undermines this requirement.
Therefore, because petitioner does not participate in any
activity specified in section 48(a)(1)(B)(i), this exception does
not apply to the facts in this case. Consequently, the roof and
the walls of the Reserve Facility are structural components in
accordance with section 1.48-1(e)(2), Income Tax Regs.
4. Miscellaneous Systems
The remaining components of the Reserve Facility in issue
are the electrical, heating, ventilation, and fire protection
systems. While recognizing that these items are specifically
included as examples of items which constitute "structural
components" in section 1.48-1(e)(2), Income Tax Regs., petitioner
insists that they do not "relate to the operation or maintenance
Page: Previous 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 NextLast modified: May 25, 2011