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both fronts and concludes that the Second Lease does not qualify
for the passive rental exception under section 512(b)(3).
Respondent contends the Museum rendered substantial services
solely for the convenience of MCA. Specifically, respondent
directs our attention to three lease provisions: The requirement
that the Museum arrange for parking; the requirement that the
Museum maintain the FGA grounds and arrange for security; and the
requirement that the Museum use its best efforts with respect to
obtaining the necessary permits and licenses (e.g., a liquor
license). We will deal with each of these in turn.
Respondent argues that the parking arrangements under the
lease constitute substantial services not typically rendered to
tenants. The Museum responds that, just as the Museum is without
walls, FGA is an amphitheater without parking spaces. Therefore,
the Museum had no choice but to arrange for parking spaces,
because otherwise it would be impractical to hold concerts at
FGA.
We agree with the Museum that arranging for the parking
spaces was not an impermissible service provided to MCA. The
regulations proscribe services rendered to the tenant if they are
"primarily for his convenience and are other than those usually
or customarily rendered in connection with the rental of rooms or
other space for occupancy only." Sec. 1.512(b)-1(c)(5), Income
Tax Regs. For instance, the regulations state that maid
services, such as found at a hotel, are impermissible personal
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