Robert D. and Ana M. Shirley - Page 13

                                       - 13 -                                         
          would clearly qualify as section 179 property.  But what would              
          substitute for the lodging accommodations a motor home provides?            
          We know from the stipulated facts that the predominant number of            
          motor home rentals were for less than 30 days.9  This strongly              
          suggests that Shirley’s customers would rent hotel or motel                 
          rooms, campground space, or other transient lodging.  All of                
          these would qualify for the exception to the general exclusion of           
          lodging from the category of section 179 property.                          
               Because both the substitute transportation and the substi-             
          tute lodging would qualify, we conclude that motor homes, like              
          Shirley’s, used by renters mostly for periods of less than 30               
          days, are section 179 property.  As we have in other cases of               
          deciding eligibility for the investment tax credit,10 we leave              
          grappling with a difficult element of a difficult test for                  
          another case.  In this one, petitioners are allowed a deduction             
          under section 179 for the purchase of MH #22 in 1997.                       
               To reflect the other concessions and compromises already               
          made by the parties,                                                        

               9 The stipulated evidence shows that 24 of Shirley’s 27                
          motor homes were rented to transients more than half the time               
          that those 24 motor homes were rented during 1997.                          
               10 See, e.g., Tibbs v. Commissioner, T.C. Memo. 1987-515               
          (avoiding decision on whether mobile homes were “tangible                   
          personal property”); Pickren v. Commissioner, T.C. Memo. 1981-52            
          (avoiding decision on whether mobile homes qualified as hotel or            
          motel).                                                                     






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  Next

Last modified: May 25, 2011