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<br />i <br />~~~ <br />28 . Origination fee in cor~-:ection wi'~.h a lease . <br />- 29. Fair market value of property given up in Section 1031 <br />like-kind exchange. <br />30: Expenditures~to retire a portion of a prior exempt <br />small issue; however, only to the exter_t pai d or in- <br />curred within the six-year period. Treas. Reg. <br />• --§1.103-10(f) Example 10; Rev. Rul. 76-98, 1976-1 C.B. <br />31. <br />The following are representative examples of ex- <br />penditures which are not "Section 103(b)(6)(D) capital ex- <br />penditures": <br />1. Administrative costs, overhead, and wxges~(unless allo- <br />cable to the acq-uisi~ion, cor_struction, or erection of <br />property described in "1.~' above): <br />2. Cost of incidental repairs or maintenance. See Treas. <br />Reg. §1.263(x)-1(b). ~-~ <br />_ .f <br />3.' Cost of property which would properly be included in <br />inventory if on hand at the erid~of the txxable yexr <br />[i.e., direct inventory costs]. LTR 8015025. See IRC <br />§§1221(1), 1231(b)(1)(A).~ <br />• a. Purchase of cash, accounts receivable and prepaid <br />expenses. LTR 8015025. <br />5. host of property held primarily fcr sale tc customers <br />in the ordinary course of a trade or business if not <br />used in the trade or business until sold. See IRC <br />§§1221(1), 1231(b)(1)(B); Rev. Rul. 62-lal, 1962-2.C.B. <br />182. <br />6. Cost of supplies (defined as property which does not <br />have a use~'ul li **"e substxntially bevond the taxable <br />year when aca~uired). . <br />7. Periodic rent payments under a true lease for federal <br />income tax purposes (Rev. Rul. 77-353, 1977-2 C.B. aa); <br />but lessor's expenditures for the leased item are capi- <br />tal expenditures' if made within the six-year period <br />unless the leased-item is described in "7." below. <br />