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the Whiteco criteria, each factor favors petitioner’s position.
In direct contrast, respondent contends that each Whiteco factor
supports respondent’s position that the tanks are inherently
permanent structures. Our analysis of the Whiteco factors and
the parties’ arguments regarding them follow.
A. Is the Property Capable of Being Moved, and Has It in Fact
Been Moved?
Although CITGO has moved tanks in the past, and Alan R.
Watson,16 creator of the Watson Air Bag technology, testified as
an expert on tank lifting and relocation, respondent maintains
that the tanks do not satisfy this Whiteco factor. Respondent
argues that the tanks can be moved intact only within the same
terminal or onto an adjacent property and that relocating tanks
over long distances requires cutting the tanks into pieces.
According to respondent, this type of movement is not Whiteco
“movement”.
In Whiteco Indus., Inc. v. Commissioner, supra at 672, we
did not provide a definition for the term “movement” but
concluded that this factor was “clearly” satisfied because the
outdoor advertising signs had in fact been moved. As support for
our conclusion, we cited Estate of Morgan v. Commissioner, 52
T.C. 478, 483 (1969), affd. per curiam 448 F.2d 1397 (9th Cir.
16Alan R. Watson is president of A.R. Watson USA, LLC, and
is also employed by his New Zealand company, A.R. Watson, Ltd.
A.R. Watson USA, LLC, markets the concept of tank lifting and
performs tank lifts and relocations.
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