Tax Planning for Land Preparation Costs — footnotes

¹ This is the present value of the tax savings due to depreciation over 16 years, assuming a 35% Federal tax rate and a 5% discount rate.

² See Rev. Proc. 87-56, 1987-2 CB 674.

³ See Rev. Rul. 65-265, 1965-2 CB 52, clarified by Rev. Rul. 68-193, 1968-1 CB 79; and Rev. Rul. 80-93, 1980-1 CB 50; but see IRS Letter Ruling (TAM) 200043016 (10/30/00).

⁴ Eastwood Mall, Inc., ND OH, 4/14/95; see also Aurora Village Shopping Center, Inc., TC Memo 1970-39.

⁵ See Trailmont Park, Inc., TC Memo 1971-212.

⁶ See Rev. Ruls. 65-265 and 68-193, note 3 supra.

⁷ Rudolph Investment Corp., TC Memo 1972-129.

⁸ See Southern Natural Gas Co., 412 F2d 1222 (Ct. Cl. 1969); Commonwealth Natural Gas Corp., 395 F2d 493 (4th Cir. 1968); and Consumers Power Co., 299 FSupp 1180 (DC MI 1969), aff’d in part and rev’d in part on other issues, 427 F2d 78 (6th Cir. 1970).

⁹ See Rev. Rul. 72-96, 1972-1 CB 67.

¹⁰ See Edinboro Co., 224 FSupp 301 (WD PA 1963), and Rev. Rul. 55-290, 1955-1 CB 320.

¹¹ See Rev. Rul. 2001-60, 2001-2 CB 587.

¹² See Eastwood Mall, note 4 supra; Rev. Rul. 80-93, note 3 supra; and Rev. Rul. 74-265, 1974-1 CB 56.

¹³ See Rudolph Investment Corp., note 7 supra; and James M. Tunnell, Jr., 512 F2d 1192 (3d Cir. 1975).

¹⁴ Wolfsen Land and Cattle Co., 72 TC 1 (1979).

¹⁵ Rev. Rul. 88-99, 1988-2 CB 33.

¹⁶ See Richard Simon, 68 F3d 41 (2d Cir. 1995), aff’g 103 TC 247 (1994); and Brian Liddle, 65 F3d 329 (3d Cir. 1995), aff’g 103 TC 285 (1994); see also Bruce Selig, TC Memo 1995-519.

¹⁷ See AOD/CC-1996-009 (7/15/96).

¹⁸ See IRS Letter Ruling (FSA) 200021013 (5/26/00).

¹⁹ See e.g., Aurora Village Shopping Center, note 4 supra, and Algernon Blair, Inc., 29 TC 1205 (1958).

²⁰ See Rev. Proc. 2002-33, 2002-1 CB 963.

²¹ See Rev. Procs. 2002-9, 2002-1 CB 327, and 2004-11, IRB 2004-3, 311, Section 3.01(1).