| January 12, 1990 |
Question 10
Available For Use Rules
Under Draft paragraph 13(27)(d), is property considered capable of producing a commercially saleable product in combination with other property of the taxpayer if the property itself is capable of performing its designed function (i.e. fully manufactured) but it has not yet been attached to other modules in its final configuration?
Department's Position
In this situation, we assume that the property, prior to being attached to the other modules, would not be capable of producing an intermediate product to be used or consumed by the taxpayer in producing a commercially saleable product. Based on this assumption, it is the Department's view that the property would not be "capable...of producing a commercially saleable product" within the meaning of draft paragraph 13(27)(d) where it is capable of performing its designed function but it has not yet been attached to other modules in its final configuration.
M. EisnerSection 23TEIJanuary 1990