Designing And Building Automatic Stills.59
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To qualify, the trade or business must be conducted by a party contractually obligated to fulfill the terms of a "specified infrastructure arrangement," defined as a government contract of more than five years with a private trade or business that is responsible for designing, building, constructing, reconstructing, developing, redeveloping, managing, operating, or maintaining a "qualified public infrastructure property" (Rev. Proc. 2018-59, ยง4.11). Qualified public infrastructure property is infrastructure property that is either owned by the government or owned by a private trade or business operating under an arrangement where rates charged for the use of the infrastructure property are subject to regulatory or contractual government control. The property must also be available for use by the general public, for example, airports, mass transit, waste facilities, water facilities, or electric facilities.
Example: for one-year qualifying investments of $100,000, a short-term capital gains deduction of $55,800 is allowable, limited to the lesser of (1) $10,000 or (2) the excess of (i) the rounded annual cost basis of the qualifying investment over (ii) 61 %. d2c66b5586