Property Factor; Valuation of Owned Property

364.01 Property that is owned must be valued at its original cost. Original cost is the basis of the property for federal income tax purposes (prior to any federal adjustments) at the time of acquisition and as adjusted by subsequent capital additions or improvements and partial dispositions, by reason of sale, exchange, abandonment, etc. 364.02 If the original cost of property cannot be determined, the property is included in the factor at its fair market value at the date of acquisition by the taxpayer. 364.03 Inventory must be included in the factor consistent with the valuation method used for federal income tax purposes. 364.04 Property acquired by gift or inheritance must be included in the factor at its basis for determining depreciation for federal income tax purposes. (Neb. Rev. Stat. § 77-2734.12. December 27, 2015.)