Election to use regular completion factors Sample Clauses

Election to use regular completion factors. Under this paragraph (f)(2), a taxpayer may elect for AMTI purposes to determine the completion factors of all of its long-term contracts using the methods of accounting and allocable contract costs used for regular federal income tax purposes. A taxpayer makes this election by using regular methods and regular costs to compute the completion factors of all long-term contracts entered into during the tax- able year of the election for AMTI pur- poses on its original federal income tax return for the election year. This elec- tion is a method of accounting and, thus, applies to all long-term contracts entered into during and after the tax- able year of the election. Although a taxpayer may elect to compute the completion factor of its long-term con- tracts using regular methods and reg- ular costs, an election under this para- graph (f)(2) does not eliminate a tax- payer’s obligation to comply with the requirements of section 55 when com- puting AMTI. For example, although a taxpayer may elect to use the deprecia- tion methods used for regular tax pur- poses to compute the completion factor of its long-term contracts for AMTI purposes, the taxpayer must use the depreciation methods permitted by sec- tion 56 to compute AMTI.