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separate activities and that the lease activity had no
independent significance for tax purposes.
A lease is defined as a “contract by which the rightful
possessor of personal property conveys the right to use that
property in exchange for consideration.” Black’s Law Dictionary
898 (7th ed. 1999). In the instant cases, the carriers did not
contract solely to use the owner-operators’ trucks for a
stipulated period of time for consideration. The carriers and
owner-operators agreed to enter into a business relationship for
the purpose of transferring cargo from one point to another using
the latter’s vehicles. The payments for the services provided
were to be based upon published schedules relating to the weight
of the cargo and the distance transferred. Petitioners were not
paid for the use of their vehicles if they did not drive, and
petitioners did not receive wages for driving if they did provide
their own vehicles. As a practical matter, petitioners retained
control of the use of their vehicles at all times and were
responsible for all operating expenses. The carriers never
acquired possession of the vehicles. It is true that each owner-
operator was required to display the carrier’s placard on the
side of his truck while it was being used for that carrier, but
the placard could be removed if the truck was to be used for
other purposes. Moreover, there was no definite lease term.
Petitioners were always free to use their trucks how and for whom
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