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property leased by petitioners to Pauline’s Concrete.
Accordingly, petitioners have not shown they meet the
requirements of this exception.
(b) The Extraordinary Personal Services Exception
Petitioners argue in their brief that “the services * * *
[they] provide are personal in nature and not merely the rental
of concrete pumping trucks and equipment”. For purposes of the
extraordinary personal services exception, the temporary
regulations provide:
extraordinary personal services are provided in
connection with making property available for use by
customers only if the services provided in connection
with the use of the property are performed by
individuals, and the use by customers of the property
is incidental to their receipt of such services. For
example, the use by patients of a hospital’s boarding
facilities generally is incidental to their receipt of
the personal services provided by the hospital’s
medical and nursing staff. Similarly, the use by
students of a boarding school’s dormitories generally
is incidental to their receipt of the personal services
provided by the school’s teaching staff. [Sec. 1.469-
1T(e)(3)(v), Temporary Income Tax Regs., 53 Fed. Reg.
5702 (Feb. 25, 1988).]
Section 1.469-1T(e)(3)(viii), Example (3), Temporary Income Tax
Regs., 53 Fed. Reg. 5703 (Feb. 25, 1988), illustrates this
exception:
The taxpayer is engaged in an activity of transporting
goods for customers. In conducting the activity, the
taxpayer provides tractor-trailers to transport goods
for customers pursuant to arrangements under which the
tractor-trailers are selected by the taxpayer, may be
replaced at the sole option of the taxpayer, and are
operated and maintained by drivers and mechanics
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