Spare parts are placed in service when they are delivered to the taxpayer
September 1, 1998 |
By
Keith Martin in Washington, DC
Northern States Power Company won another round in a long-running battle with the IRS over when it can start depreciating nuclear fuel assemblies. The IRS argued the utility had to wait until the rods were installed in the reactor core. Equipment is considered in service when it is ready for the intended use. The US court of appeals for the 8th circuit said recently that this occurs in the case of nuclear fuel rods at delivery to the taxpayer. There is no need to wait for actual use.
