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“used predominantly to furnish lodging,” but is allowable if a
motor home is “used primarily as a means of transportation.”
It thus asks an imponderable question--when a vehicle can be
simultaneously used for both lodging and transportation, how can
one tell which use is primary?
Background
Robert and Ana Shirley were Oregon residents when they filed
their petition. Robert Shirley owned Motor Home Rentals, a
business in Central Point, Oregon that both rented and sold motor
homes. During 1997, his rental fleet had a total of 27 motor
homes, including a new 1998 Gulfstream Motor Home that he bought
for $48,000 in August and added to his fleet under the
designation “MH #22.”
His usual terms for motor home rentals were much like those
for car rentals--a daily or weekly fee, a daily mileage allowance
of 100 miles, and a mileage charge of $.25 for each additional
mile. In 1997, petitioner rented his motor homes to numerous
customers in a total of 322 transactions, for anywhere between
one and 90 days. Most of his customers used fewer than their 100
miles per day.
This case arose from notices of deficiency that respondent
issued for 1997 and 1998. Concessions and compromises by both
parties completely settled the dispute about the Shirleys’ 1998
deficiency, leaving only one issue to decide--whether to allow
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