Page 426 - Large Business IRS Training Guides

FDII - Example 2 - Illustration

Year and Dual Use Property)
• Illustration (Partial

• Since the building was
sold on April 30, and USP is a calendar year taxpayer,
quarter ending March 31 is counted, along with the number days in the
one full
partial quarter ending April 30.

• On March 31 and April 30 the property’s
adjusted bases were $165 and $205,
these amounts are equal to $99 and $123, respectively.
and 60 percent of

1 through March 31 amount of $99 is $24.75 ($99
• When averaged the January
4).
divided by

• The average of the April 1 through April
30 amount of $123 is calculated as
$10.11 ($123 * 30 / 365).

• These figures Thus, QBAI equals $34.86 (USP’s average
are added together.
QBAI
is computed as $24.75 + $10.11 in this instance).

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