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However, the curing, stripping, grading, baling, and boxing
of the tobacco leaves are not "ancillary post-production
activities". See sec. 1.48-10(f)(2), Income Tax Regs. Although
"gathering, sorting, loading," and "packing" activities when
"carried on in conjunction with" and "ancillary" to other
permissible purposes, do not disqualify a structure as a "single
purpose agricultural structure", they cannot constitute the sum
total of the activities performed in the structure. Id. Because
we are not persuaded that any of the activities performed in the
Tobacco Barn, i.e., the curing, stripping, grading, baling, and
boxing of the tobacco leaves, constitute the commercial
production of plants in a greenhouse, we cannot hold that such
activities simply constitute "ancillary post production"
activities. See id.
Third, for a structure to be a "single purpose
horticultural" structure, it must satisfy an "actual use" test.
See sec. 1.48-10(e)(2), Income Tax Regs. However, because we
have held that the Tobacco Barn does not meet the "specific
design" or the "exclusive use" test, we need not consider whether
it meets the "actual use" test.
Based on the foregoing, we hold that the Tobacco Barn is not
a single purpose horticultural structure. It therefore follows
that the Tobacco Barn is not section 179 property.
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