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Understanding Structural Components [Internal Revenue]: A Legal Overview
Definition & Meaning
The term "structural components" refers to essential parts of a building that contribute to its overall functionality and integrity. According to the Internal Revenue Code, this includes elements such as:
walls, partitions, floors, and ceilings
permanent coverings like paneling and tiling
windows and doors
components of heating and air conditioning systems, including motors and ducts
plumbing and fixtures, such as sinks and bathtubs
electric wiring and lighting fixtures
chimneys, stairs, escalators, and elevators
sprinkler systems and fire escapes
However, machinery installed solely for temperature or humidity control, which is essential for other machinery or food processing, does not qualify as a structural component.
Table of content
Legal Use & context
In legal terms, "structural components" are significant in tax law, particularly concerning depreciation and investment credits for real estate. Understanding what constitutes a structural component can impact tax liabilities and eligibility for certain tax benefits. Users may manage related tax forms and documentation through resources like US Legal Forms, which provide templates drafted by legal professionals.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A commercial building's central heating system, including its ducts and controls, qualifies as a structural component.
Example 2: A newly installed elevator in a multi-story office building, completed after June 30, 1963, is considered a structural component for tax purposes. (hypothetical example)
Relevant laws & statutes
The primary legal reference for structural components is found in the Internal Revenue Code, specifically:
26 CFR 1.48-1(e)(2): Details the definition and exclusions of structural components.
Section 48(a)(1)(C): Addresses special rules for elevators and escalators acquired after June 30, 1963.
Comparison with related terms
Term
Definition
Key Differences
Structural Components
Parts of a building essential for its operation and maintenance.
Includes fixed installations like walls and plumbing.
Machinery
Equipment used for specific functions, often movable.
Excludes machinery that is solely for climate control.
Common misunderstandings
What to do if this term applies to you
If you are involved in real estate or construction, understanding structural components is vital for tax planning and compliance. Consider the following steps:
Review your property's components to determine what qualifies as structural.
Consult with a tax professional for advice specific to your situation.
Explore US Legal Forms for templates related to property tax forms and claims.
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