Common use of X Corp Clause in Contracts

X Corp. acquires a certain piece of equipment (which is new section 38 property) for use in its business. Within 3 months, X sells a 70 percent undivided inter- est in the property to lessor A and a 10 per- cent undivided interest in the property to lessor B and leases both portions back under separate section 168(f)(8) leases. The invest- ment tax credit and ACRS deductions associ- ated with the property will be divided among X, lessor A, and lessor B, on a basis of 20 per- cent, 70 percent, and 10 percent, respectively. [T.D. 7791, 46 FR 51907, Oct. 23, 1981, as amended by T.D. 7795, 46 FR 56150, Nov. 13, 1981; T.D. 7800, 46 FR 63258, Dec. 31, 1981] § 5c.168(f)(8)–7 Reporting of income, deductions and investment tax credit; at risk rules.