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the limited partnership incurred the expenses under the
construction contract, not the taxpayer who was a limited
partner. Id. at 82. “The TRA transitional provisions make no
accommodation for attributing costs incurred by a limited
partnership to the partners for the purpose of determining
whether they have ‘incurred or committed’ costs.” Id.
Furthermore, the Court stated that even if the taxpayer could
attribute the costs incurred, those costs attributable to the
taxpayer would be limited to its percent interest in the
partnership, which was approximately 16 percent. Id.
According to the agreement for joint ownership, construction
and operation, the JEA and FPL agreed to own the SJRPP as tenants
in common. The JEA owned an 80-percent undivided interest, and
FPL owned a 20-percent undivided interest. The agreement
provides
that “The Co-owners shall pay into the Construction and Plant
Account (i) in proportion to their Ownership Interests amounts of
Costs of Construction and Costs of Plant incurred or accrued
after the date of the Closing”.
We agree with respondent that petitioner’s 20-percent
ownership interest in the SJRPP limits its costs incurred or
committed to no more than 20 percent. Payless Cashways supports
the finding that petitioner did not satisfy the costs incurred or
committed requirement of the plant facility transitional rule.
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