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as new section 50(b)(2). The Secretary never issued regulations
under section 50(b)(2), but the existing Treasury regulations
under old section 48(a)(3) have remained unchanged since the time
of their issuance in 1964.6 The definition of “section 179
property” largely matches old section 48’s definition of “section
38 property” that was in the 1954 Code. Sec. 179(d). Old
section 48(a)(1) defined “section 38 property” as “tangible
personal property,” and old section 48(a)(3) excluded from that
definition “[p]roperty which is used predominantly to furnish
lodging or in connection with the furnishing of lodging.”
Current section 50(b)(2) is nearly identical to old section
48(a)(3), so we will use the regulations under old section 48 for
guidance.
Section 1.48-1(h)(1)(i) of those regulations provides that
property eligible for the deduction
does not include property which is used predominantly
to furnish lodging or is used predominantly in
connection with the furnishing of lodging during the
taxable year. * * * The term “lodging facility”
includes an apartment house, hotel, motel, dormitory,
or any other facility (or part of a facility) where
sleeping accommodations are provided and let, except
that such term does not include a facility used
primarily as a means of transportation (such as an
aircraft, vessel, or a railroad car) * * * even though
sleeping accommodations are provided.
Section 1.48-1(h)(2)(ii) of the regulations then further
describes the transient exception to the lodging exclusion:
6 Compare T.D. 6731, 1964-1 C.B. (Part 1) 11, 39-40.
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