PDV America, Inc. and Subsidiaries - Page 35

                                       - 35 -                                         
               In JFM, Inc. & Subs. v. Commissioner, T.C. Memo. 1994-239,             
          we decided that the gasoline canopies were not permanently                  
          affixed to the land, even though the canopies’ posts were bolted            
          onto special concrete footings.  We observed that, once the posts           
          were unbolted, the concrete footings were the only “residual                
          structures remaining on the land.”  Id.; see also Standard Oil              
          Co. (Ind.) v. Commissioner, 77 T.C. at 407, 409 (service station            
          sign poles bolted into concrete foundations were not permanently            
          affixed);  Fox Photo, Inc. v. Commissioner, T.C. Memo. 1990-348             
          (1-hour photo labs attached to their foundations, but easily                
          removable, were not permanently affixed); Film N’ Photos, Inc. v.           
          Commissioner, supra (photo merchandising units attached to                  
          concrete bases that only rested on the parking lot were not                 
          permanently affixed to the land).                                           
               Unlike the property in Whiteco or JFM, CITGO’s tanks are not           
          buried underground or bolted to their foundations; the tanks rest           
          on top of their foundations.  Contending that the tanks’ “massive           
          weight and size * * * make them sufficiently affixed to the land            
          for Whiteco purposes”, respondent relies on Siler v.                        
          Commissioner, T.C. Memo. 1985-257.                                          
               In Siler, the property at issue was six horizontally                   
          positioned petroleum product storage tanks with 11,500- to                  
          17,500-gallon capacities, which were cradled in the U-shaped top            
          of concrete or brick piers extending 30 inches below ground.  The           






Page:  Previous  18  19  20  21  22  23  24  25  26  27  28  29  30  31  32  33  34  35  36  37  Next

Last modified: May 25, 2011