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Please refer to example entitled:

Working with Tangible Property Loss

Notes:

Explanation/Example

SUBPART D Reference § 24.301(g)(14)

Working with Tangible Property Loss

The Maxtop Company has a large drill press that is personal property. Compute the eligible moving cost under each of the following scenarios. The press is worth about $2,500 installed in place, and has about a $1,500 auction value.

If Maxtop chooses to move the drill press: Cost to haul $200; cost to take-down (including water and electrical disconnects) $180; set-up with all utilities and floor mounting $250. The drill press will also require an enhanced personnel safety barrier (code required) at the new location. This modification will add another $400 to the set-up cost. Allowable moving cost is $1,030.

  1. Assume Maxtop has modified its operation and no longer has a need for the drill press. They will not move it and want to apply for the Tangible Property Loss payment. They have arranged to sell the machine for $400. Allowable moving cost: $__________

This is also the lesser of two calculated numbers:

  1. The in-place value less sale, $2,500 - $400 = $2,100

  2. The moving cost (since the item is in use and the business is continuing, it is full move cost, but without code modifications) $630.

So the correct answer is $630.

2. Maxtop has another similar drill press in storage that is not currently functional, and they have decided not to move it. They want to claim a Tangible Property Loss payment for this drill press. Allowable moving cost: $_____________

This is also the lesser of two calculated numbers:

  1. The in-place value as is, $1,500

  2. The moving cost without reconnect (it is in storage, not connected to utilities), $200 (hauling)

So the correct answer is $200.

This is the same payment available to Maxtop if they would terminate their business and use the Direct Loss payment to receive compensation for the equipment. A fifty mile move would be assumed in that case.

Updated: 04/02/2013
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