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requiring its removal. A particular variety of wine/grape may
decline in demand and become economically obsolescent.
If those events occur, the removal of old vines and the
planting of new vines normally necessitate the removal of the
trellising and drip irrigation systems. As a general matter,
however, it is intended that trellising and drip irrigation
systems remain in place for the life of the grapevines for which
they are constructed. This factor tends to favor respondent with
respect to the trellising and drip irrigation systems.
(b) The well is intended to remain in place indefinitely;
however, wells have a limited usefulness due to minerals and other
things in the water that can obstruct the well casing and pump
equipment. Generally, a well is expected to last more than 20
years. Accordingly, this factor favors respondent with respect to
the well.
4. The fourth factor is “How substantial a job is removal of
the property and how time-consuming is it? Is it ‘readily
removable’?” Id., at 673.3
3 The relevance of the “movability” of an asset was
discussed in Hosp. Corp. of Am. & Subs. v. Commissioner, 109 T.C.
21, 57-58 (1997). We found the following discussion from that
case to be instructive:
Movability itself is not the controlling factor in
deciding whether the property lacks permanence.
Kramertown Co. v. Commissioner, 488 F.2d 728, 731 (5th
Cir. 1974), affg. T.C. Memo. 1972-239; see also
Consolidated Freightways v. Commissioner, 708 F.2d
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