Page 424 - Large Business IRS Training Guides

FDII - Example 2 – Analysis 1

is a depreciable dual use property that generates $500
How
of total income ($300 of which is
DEI) taken into account in

determining QBAI?

- 60 percent of the property is treated as
• Apportionment

specified tangible property.

to the percentage of DEI produced by the
• equal
property ($300) compared with total income produced

by the property ($500)

• So,
in this case 60 percent of the property’s quarterly

bases
are taken into account in determining QBAI.

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