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trial concerning what actions, if any, the Museum actually took
with regard to the "best efforts" clause.
The Museum argues that it is not obligated under this clause
to render a service primarily for the benefit of the lessee.
Rather, the Museum asserts that this clause was inserted to
ensure that the Museum would sign any application which required
the landlord's signature. While the term "best efforts" connotes
more than merely signing an application for a license, the
evidence at trial supports petitioner's assertion. No evidence
was presented at trial to contradict the Museum's assertions in
this regard. Consequently, we find that no impermissible
services were performed pursuant to the best efforts clause. On
the basis of the foregoing discussion, we conclude that the
Museum did not render substantial services for the benefit of MCA
that go beyond those services usually rendered in connection with
the rental of real estate.
Next, we shall address respondent's argument that the rental
income was based, in part, on MCA's net income or profits.
Section 512(b)(3)(B)(ii) specifically denies the rental income
exclusion where the amount of rent is based, in whole or in part,
on the income or profits derived by any person from the leased
property, other than an amount based on a fixed percentage or
percentages of receipts or sales. Oblinger Trust v. Commis-
sioner, 100 T.C. 114 (1993).
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