Rev. Rul. 59-238
Rev. Rul. 59-238; 1959-2 C.B. 99
- LanguageEnglish
- Tax Analysts Electronic Citationnot available
Obsoleted by Rev. Rul. 70-594
Advice has been requested whether a quonset hut type of building, with portable grain elevating and handling equipment permanently available, qualifies as a grain storage facility for purposes of the amortization deduction provided in section 169 of the Internal Revenue Code of 1954.
In general terms, section 169 of the Code allows a special sixty-month amortization deduction of the adjusted basis of grain storage facilities in lieu of depreciation if the facility has been constructed, or reconstructed and completed after December 31, 1952, and on or before December 31, 1956. Section 169(d) of the Code provides, in part, as follows:
(d) DEFINITION OF GRAIN-STORAGE FACILITY.-For purposes of this section, the term `grain-storage facility' means-
(1) any corn crib, grain bin, or grain elevator, or any similar structure suitable primarily for the storage of grain, which crib, bin, elevator, or structure is intended by the taxpayer at the time of his election to be used for the storage of grain produced by him (or, if the election is made by a partnership, produced by the members thereof); and
(2) any public grain warehouse premanently equipped for receiving, elevating, conditioning, and loading out grain, * * *
Section 1.169-2(c) of the Income Tax Regulations expands on section 169(d)(2) of the Code, stating, in part, as follows:
* * * A public grain warehouse must be a permanent structure, of either the elevator or so-called `flat storage' type, suitable primarily for the storage of grain, and the equivalent for receiving, elevating, conditioning, or loading out grain must be either permanently installed or permanently available for use. * * *
It is the position of the Internal Revenue Service that the term `flat storage' type, as used in section 1.169-2(c) of the regulations, was intended to include the quonset hut type of buildings.
Accordingly, it is held that a public grain warehouse using a quonset hut type of building, with portable grain elevating and handling equipment which is permanently available, comes within the definition of a `public grain warehouse' set forth in section 1.169-2(c) of the regulations and, as such, qualifies for purposes of the amortization deduction provided in section 169 of the Code.
- LanguageEnglish
- Tax Analysts Electronic Citationnot available