However, coin operated vending machines, washing machines and dryers are section 38 property even when they are used in connection with the furnishing of lodging. Tangible personal property used as part of the rehabilitation of certified historic structures is section 38 property even though the structure is used to furnish lodging. Also, non-lodging commercial facilities, such as tangible personal property in a drug store or restaurant situated in an apartment building or hotel, can qualify as section 38 property if they are available to persons not using the lodging facilities. This category would include such things as blast furnaces, oil and gas pipelines, railroad tracks and signals, telephone poles, broadcasting towers, oil derricks, and fences used to confine livestock. Elevators and escalators are specifically included in the definition of section 38 property.
Fungibles are commodities, such as oil or grain, that can be mixed together.
Later, they can be returned to parties in the mixed state. For example, if two people put grain in a grain silo, they could each pull out the original amount put in, but the grains would be mixed. Single purpose agricultural or horticultural structures. Single purpose agricultural or horticultural structures may be section 38 property. A single purpose agricultural structure is section 38 property if it is designed, constructed, and used for housing, raising and feeding a particular type of livestock, such as cattle, pigs, or poultry, and their produce, and housing the equipment necessary for the particular activity.