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r. r~ • <br />C~ <br />[i.e., direct inventory costs]. LTR 8015024; LTR <br />8239051. See IRC §§ 1221(1), 1231(b)(1)(A). <br />4. Purchase of cash, accounts receivable and prepaid <br />expenses. LTR 8015024; LTR 8239051. <br />5. Cost of property (including real estate) held primarily <br />for sale to customers in the ordinary course of a trade <br />or business if not used in the trade or business or for <br />the production of inceme until sold. LTR 8147183; LTR <br />8234037. See IRC §§ 1221(1), 1231(b)(1)(B); Rev. Rul. <br />62-141, 1962-2 C.B. 1982. <br />6. Cost of supplies (defined as property which does not <br />have a useful life substantially beyond the taxable <br />year when accruired) . E.Q.. , LTR 8206117 ( expenditures <br />for production and resinking of dies with useful life <br />of less than one year are net capital expenditures) . <br />7. Periodic rent payments under a trae lease for federal <br />income tax purposes (Rev. Rut. 77-353, 1977-2 C.3, aa~ <br />w and LTR 8304115); but lessor's expenditures fcr the <br />leased item are capital expenditures if made wit`~ir_ the <br />six-year period unless the leased item is described in <br />"8." below. LTR 8152123. <br />8. Cost to the lessor or personal property leased under a <br />true lease for federal inceme tax purposes (determined <br />without regard to the safe harbor leasing rules of <br />Section 168(f)(8) of the Code, Temp. Reg. § 5c.103-1) <br />either from the manufacturer or from a person in the <br />trade or business of leasing similar property provided, <br />pursuant to general business practice, property of this <br />type ordinarily is the subject of a lease. Treas. Reg. <br />§ 1.103-10(b)(2)(iv}(b); LTR 7925037; LTR 8317083 (even <br />if not true lease for federal income tax purposes).. <br />However, if the principal user of a facility purchases <br />the personal property within three years of the bond <br />issue, sells it to a leasing company, and leases it <br />back, a capital expenditure was incurred on the occa- <br />sion of the purchase in the amount thereof regardless <br />of the subsecruent sale and leaseback. Rev. Rul. <br />79-248, 1979-2 C.S. 41. gut see Rev. Rul. 8C-162, <br />1980-1 C.3. 26 (no actual pure hase e~.en t?:oug h purchase <br />order submitted and down pa,r.;~ent :jade) . <br />-R- <br />