95-22382. Capitalization of Interest; Correction

[Federal Register Volume 60, Number 175 (Monday, September 11, 1995)]
[Rules and Regulations]
[Page 47053]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-22382]



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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 8584]
RIN 1545-AK03


Capitalization of Interest; Correction

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Correcting amendments.

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SUMMARY: This document contains a correction to the final regulations 
[TD 8584] which were published in the Federal Register for Thursday, 
December 29, 1994 (59 FR 67187). The final regulations relate to the 
requirement to capitalize interest with respect to the production of 
property.

EFFECTIVE DATE: January 1, 1995.

FOR FURTHER INFORMATION CONTACT: Jan L. Skelton, [phone] (not a 
toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    The final regulations that are the subject of these corrections are 
under section 263A(f) of the Internal Revenue Code.

Need for Correction

    As published, the final regulations contains an error that is 
misleading and in need of correction.

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

    Accordingly, 26 CFR Part 1 is corrected by making the following 
correcting amendment:

PART 1--INCOME TAXES

    Paragraph 1. The authority citation for Part 1 continues to read in 
part as follows:

    Authority: 26 U.S.C. 7805 * * *

    Par. 2. In Sec. 1.263A-9(f)(3), paragraph (v) of Example 3., the 
last sentence is revised as follows:


Sec. 1.263A-9  The avoided cost method.

* * * * *
    (f) * * *
    (3) * * *
    Example 3. (i) * * *
    (v) * * * For Unit B, this amount is $775,000 ([$0 + $500,000 + 
$1,000,000 + $1,600,000]4).
* * * * *
Cynthia E. Grigsby,
Chief, Regulations Unit, Assistant Chief Counsel (Corporate).
[FR Doc. 95-22382 Filed 9-8-95; 8:45 am]
BILLING CODE 4830-01-P