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employed by the taxpayer. The average period of
customer use for the tractor-trailers exceeds 30 days.
Under these facts, the use of the tractor-trailers by
the taxpayer’s customers is incidental to their receipt
of personal services provided by the taxpayer.
Accordingly, the services performed in the activity are
extraordinary personal services * * * and, * * *
[thus], the activity is not a rental activity.
In this case, petitioners are not engaged in an activity
which provides personal services to Pauline’s Concrete.
Petitioners simply own and lease cement pumping equipment to
Pauline’s Concrete. The lease is “net of all costs” to
petitioners.15 While petitioners clearly provide personal
services in their capacity as employees of Pauline’s Concrete
and, in their individual capacity, to construction contractors,
nonetheless, with respect to leasing equipment to Pauline’s
Concrete, the record reflects no provision for services incident
to such leasing activities. We hold that petitioners did not
provide extraordinary personal services within the meaning of
section 1.469-1T(e)(3)(v), Temporary Income Tax Regs., 53 Fed.
Reg. 5702 (Feb. 25, 1988). Accordingly, the activity is not
excepted from the definition of a rental activity.
Our opinion in Hairston v. Commissioner, T.C. Memo. 2000-
386, is instructive. In Hairston, the taxpayers owned heavy
construction equipment in their own names which they leased to
15Under the lease, Pauline’s Concrete “shall pay all of the
costs associated with the acquisition and maintenance of the
leased property including the cost(s) of adequate insurance
sufficient to exculpate * * * [petitioners] from any and all
liability.”
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