1.148-7 (g)(2) Certain acquisitions under turnkey contracts treated as construction expenditures.

Expenditures are not for the acquisition of an interest in existing real property other than land if the contract between the seller and the issuer requires the seller to build or install the property (e.g., a TURNKEY CONTRACT), but only to the extent that the property has not been built or installed at the time the parties enter into the contract.