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participates in the activity. Sec. 469(c)(2), (4). A rental
activity is “any activity where payments are principally for the
use of tangible property.” Sec. 469(j)(8).
As relevant herein, exceptions to the general rule that an
activity involving the use of tangible property is a rental
activity are:
(A) The average period of customer use
for such property is seven days or less;
(B) The average period of customer use
for such property is 30 days or less, and
significant personal services (within the
meaning of paragraph (e)(3)(iv) of this
section) are provided by or on behalf of the
owner of the property in connection with
making the property available for use by
customers;
(C) Extraordinary personal services
(within the meaning of paragraph (e)(3)(v) of
this section) are provided by or on behalf of
the owner of the property in connection with
making such property available for use by
customers (without regard to the average
period of customer use).
Sec. 1.469-1T(e)(3)(ii)(A) through (C), Temporary Income Tax
Regs., 53 Fed. Reg. 5702 (Feb. 25, 1988).
The period of customer use is the period during which a
customer has a continuous or recurring right to use an item of
property held in connection with the activity (without regard to
whether the customer uses the property for the entire period).
Sec. 1.469-1(e)(3)(iii)(D), Income Tax Regs. The average period
of customer use is calculated by dividing the aggregate number of
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