- 28 -
the 1-year periods within the measurement period. Sec. 1.141-
3(g)(3), Income Tax Regs.
In general, the percentage of private business use of
property for any 1-year period is the average private business
use during that year. Sec. 1.141-3(g)(4)(i), Income Tax Regs.
This average is determined by comparing the amount of private
business use and use that is not private business use (government
use) during that year. Id. In the case of a facility in which
actual government use and private business use occur at different
times, the average amount of private business use generally is
based on the amount of time that the facility is used for private
business use as a percentage of the total time for all actual
use. Sec. 1.141-3(g)(4)(ii), Income Tax Regs. In the case of a
facility in which government use and private business use occur
simultaneously, the entire facility is generally treated as
having private business use. Sec. 1.141-3(g)(4)(iii), Income Tax
Regs. If, however, there is also private business use and actual
government use on the same basis, the average amount of private
business use may be determined on a reasonable basis that
properly reflects the proportionate benefit to be derived by the
various users of the facility (for example, reasonably expected
fair market value of use). Id.
Respondent fails to explain in his determination how a
reservation of a certain capacity of wastewater disposed of
Page: Previous 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 NextLast modified: May 25, 2011