IRS guidance · 2002
FSA 200203009
Field Service Advice 200203009 (Oct. 3, 2001; released Jan. 18, 2002), CC:PSI:6, TL-N-4252-00, to Industry Counsel (Gaming)
IRS administrative guidance
What it holds
For a themed hotel and casino complex: property is classed by the activity in which it is primarily used, class 57.0 (5-year) for hotel and retail areas or class 79.0 Recreation (7-year) for gaming and entertainment. Strippable wallpaper and vinyl wall coverings, decorative millwork (molding, trim, paneling, finish carpentry that carries the theme), decorative lighting (chandeliers, sconces, track, torch and wall-wash fixtures, with their wiring), and kitchen equipment hookups are §1245 property. Emergency generators are §1245, with a functional allocation if part of their output serves building operations. Exterior facades, decorative dropped ceilings, guest-room outlets and computerized door locks are §1250. Site utilities from the property line to the building are part of the building. An outdoor pylon sign is a land improvement, with a portion (the message center) possibly §1245.
Why it matters for your study: Support for decorative finishes, wall coverings, decorative lighting and equipment hookups in hotels, casinos and similar themed commercial property. Its basic-illumination point (recessed ceiling lights are structural) marks the limit. Chief Counsel advice; not precedent under IRC §6110(k)(3), but it shows the IRS National Office position, and the IRS rarely departs from it.
- Category
- Asset classification
- Applies to
- All property types
- Status
- Vetted
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