- 18 -
1245(a)(3)(D). Respondent contends that the Tobacco Barn is a
general purpose structure. We agree with respondent.
Section 168(i)(13)(B)(ii) defines a "single purpose
horticultural structure" as:
(I) a greenhouse specifically designed,
constructed, and used for the commercial production of
plants, and
(II) a structure specifically designed,
constructed, and used for the commercial production of
mushrooms.
In addition, section 168(i)(13)(B)(iii) provides:
An enclosure or structure which provides work space
shall be treated as a single purpose * * *
horticultural structure only if such work space is
solely for--
(I) the stocking, caring for, or
collecting of livestock or plants (as the
case may be) or their produce,
(II) the maintenance of the enclosure or
structure, and
(III) the maintenance or replacement of
the equipment or stock enclosed or housed
therein.
Thus, in essence, section 168(i)(13)(B) requires that in
order to be a "horticultural structure", an asset must meet three
tests.
First, the structure must be specifically designed and
constructed for permissible purposes (i.e., the "specific design
test"). See sec. 1.48-10(c)(1)(i), Income Tax Regs. The only
permissible purposes for a single purpose horticultural structure
Page: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 NextLast modified: May 25, 2011