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What is considered “aggregate costs” to determine if my aggregate production costs exceed the $15 million ($20 million) threshold?

April 26, 2017aggregate costs determine exceed production threshold

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What is considered “aggregate costs” to determine if my aggregate production costs exceed the $15 million ($20 million) threshold?

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The determination of what costs are included in the calculation of the threshold is not specifically addressed in the legislation. These costs should be the costs that would otherwise be capitalized and amortized as part of the production. IRS guidance in the form of Notices or regulations may help clarify this issue.