Gary G. and Linda J. Hart - Page 12

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               Section 1.48-1(e)(1), Income Tax Regs., defines the term                
          "building" as follows:                                                       
               The term "building" generally means any structure or                    
               edifice enclosing a space within its walls, and usually                 
               covered by a roof, the purpose of which is, for                         
               example, to provide shelter or housing, or to provide                   
               working, office, parking, display, or sales space.  The                 
               term includes, for example, structures such as                          
               apartment houses, factory and office buildings,                         
               warehouses, barns, garages, railway or bus stations,                    
               and stores.  * * *  The term "building" does not                        
               include such structures as oil and gas storage tanks,                   
               grain storage bins, silos, fractionating towers, blast                  
               furnaces, basic oxygen furnaces, coke-ovens, brick                      
               kilns, and coal tipples.                                                
               This regulation has been interpreted to establish a two-part            
          test that considers both "appearance" and "function" in                      
          determining whether a particular structure is a "building".                  
               The appearance test, as its name implies, considers whether             
          the structure has the appearance of a building in the ordinary               
          sense.  See Yellow Freight Sys., Inc. v. United States, supra at             
          797-798; cf. A.C. Monk & Co. v. United States, 686 F.2d 1058 (4th            
          Cir. 1982).  The testimony and photographs in the record clearly             
          show that the Tobacco Barn resembles a building in appearance.               
          Thus, the Tobacco Barn would be considered a building under the              
          appearance test of section 1.48-1(e)(1), Income Tax Regs.                    
               The scope of the term "building" is limited to structures               
          used for purposes or functions similar to those enumerated in                
          section 1.48-1(e)(1), Income Tax Regs.  See Munford, Inc. v.                 
          Commissioner, supra at 479; Catron v. Commissioner, 50 T.C. 306,             

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