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In other sections of the Code and regulations that use
similar language, deciding “predominant” means defining a common
denominator and then measuring relative size. For example, use
of property “predominantly outside the United States” is measured
by the time that the property is physically in the United States
compared to the time that it is outside, sec. 1.48-1(g)(1)(i),
Income Tax Regs.; deciding whether a real estate investment trust
is “predominantly held by qualified trusts” is measured by the
value of trusts’ holdings in the REIT compared to the value of
others’ holdings, sec. 856(h)(3)(D)(i); and use of a bus
“predominantly * * * in furnishing (for compensation) passenger
land transportation” is measured by the miles the bus is used to
carry paying passengers compared to the miles it travels without
them, sec. 48.4221-8(b)(2), Manufacturers and Retailers Excise
Tax Regs.
But unlike a bus, which cannot simultaneously carry and not
carry paying passengers, a motor home can certainly be used for
both transportation and lodging; that is what it is built for.
The regulation seems to recognize this as well, since it makes
“sleeping accommodations” the sine qua non of “lodging” while
recognizing that airplanes, ships, and railroad cars make some
provision for passengers who sleep while on board. But the
regulation does not tell us what characteristics of airplanes or
ships or railroad cars distinguish them from more ordinary
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Last modified: May 25, 2011