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operator would be no more than 50 percent of the aggregate retail
rental value of the individual parking spaces, we estimate the
fair market rent of the parking area and driveway was $1,075 per
month, including $75 for Mr. Cutts’s reserved space, for a total
of $12,900 for ATV’s 1997 tax year ($1,075 x 12).
The parking area constitutes 15.7 percent of Landmark Hall
($12,900 � $82,105.26), 1 percent of which is allocated to Mr.
Cutts for personal parking ($75 x 12 � $82,105.26), and 14.7
percent to ATV for business parking.
Of the remaining 84.3 percent of Landmark Hall for the main
house, carriage house, and pool (100 percent - 15.7 percent), ATV
used 87 percent for business use, which constitutes 73.3 percent
of Landmark Hall (.87 x .843). Adding ATV’s business use of the
parking area to its business use of the main house, carriage
house, and pool, we find ATV used 88 percent of Landmark Hall.
(73.3 percent + 14.7 percent). Mr. Cutts used the remaining 12
percent of Landmark Hall for personal use.
The parties did not address the significance of the
picturesque front yard and facade. Because ATV derived the
predominant benefit from Landmark Hall, including the front yard
and facade, as a beautiful mid-19th century mansion that
impressed its customers, we allocate to ATV an additional 1
percent of the property for use of the front yard and facade.
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