Federal Circuit invalidates interest capitalization "associated property rule" when applied to temporarily withdrawn property

07/17/2012 by Washington national tax services (WNTS)

In Dominion Resources, Inc. v. United States, the U.S. Court of Appeals for the Federal Circuit, reversing the Court of Federal Claims, held that the "associated property rule" -- when applied to property temporarily withdrawn from service -- is invalid because it is not a reasonable interpretation of section 263A(f). For more, read this WNTS insight.