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(B) the lessee shall not be treated as the
owner of the property subject to an agreement
during any period such agreement is in effect.
Respondent does not contend that the master leases are not
"qualified motor vehicle operating agreements".9 Rather,
respondent argues that the TRAC may be considered in deciding
whether the substance of the lease transactions is the purchase
of a truck. We disagree. "The plain meaning of legislation
should be conclusive, except in the 'rare cases [in which] the
literal application of a statute will produce a result
demonstrably at odds with the intentions of its drafters.'"
United States v. Ron Pair Enters., Inc., 489 U.S. 235, 242 (1989)
(quoting Griffin v. Oceanic Contractors, Inc., 458 U.S. 564, 571
(1982)).
Section 7701(h) was enacted after our decision in Swift
Dodge v. Commissioner, 76 T.C. 547 (1981), revd. 692 F.2d 651
(9th Cir. 1982). In Swift Dodge, the taxpayer, a leasing
company, entered into various lease transactions. Under the
terms of each lease, part of the lessee's monthly payments was to
be applied to the cost of the vehicle ("capitalized cost")
resulting in the "depreciated value". The lease further provided
that, if at the end of the lease term the actual wholesale value
of the car exceeded its "depreciated value", the lessor would
9 See the statutory definition of "qualified motor vehicle
operating agreement" set forth supra note 3.
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