Page 425 - Large Business IRS Training Guides

FDII - Example 2 – Analysis 2

is then sold sometime within the taxable
When this asset

a proration must occur in computing QBAI.
year,

• For
partial years, all full quarter QBAI figures are summed
together
and divided by four (4) and this result is added to the
partial quarter QBAI figure prorated based on the days the
final
asset i s
owned in the final partial quarter divided by 365 (days in
a year).

Time for
an illustration…

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