Suzy's Zoo - Page 9




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                              (A) the direct costs of such                            
                         property, and                                                
                              (B) such property's proper                              
                         share of those indirect costs                                
                         (including taxes) part or all of                             
                         which are allocable to such                                  
                         property.                                                    
               Any cost which (but for this subsection) could not be                  
               taken into account in computing taxable income for any                 
               taxable year shall not be treated as a cost described                  
               in this paragraph.                                                     
                    (b) Property to Which Section Applies.-–Except as                 
               otherwise provided in this section, this section shall                 
               apply to–-                                                             
                         (1) Property produced by the taxpayer.-                      
                    –Real or tangible personal property produced                      
                    by the taxpayer.                                                  
                         (2) Property acquired for resale.--                          
                              (A) In general.–-Real or                                
                         personal property described in                               
                         section 1221(1) which is acquired                            
                         by the taxpayer for resale.                                  
                              (B) Exception for taxpayer                              
                         with gross receipts of $10,000,000                           
                         or less.-–Subparagraph (A) shall                             
                         not apply to any personal property                           
                         acquired during any taxable year by                          
                         the taxpayer for resale if the                               
                         average annual gross receipts of                             
                         the taxpayer * * * for the 3-                                
                         taxable year period ending with the                          
                         taxable year preceding such taxable                          
                         year do not exceed $10,000,000.                              
                         *    *    *    *    *    *    *                              
                    (g) Production.-–For purposes of this section–-                   









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Last modified: May 25, 2011