Hi Mark. First, thanks for your research. I have a question for you (please understand that I am not disagreeing with you, just trying to sort out the verbiage). As an attorney you know that every word in the legal world has meaning. My question is, in the sentence, "except that such term shall not include any transaction to the extent that expenses properly allocable to such transaction meet the requirement of --", how do you reconcile the use of the phrase, "to the extent that"?
In English (I'm a retired English teacher) that phrase means, "as far as", or more technically, "to the farthest range".
Note that the sentence,
"except that such term shall not include any transaction to the extent that expenses properly allocable to such transaction meet the requirement of --"
does not have the same meaning as the sentence,
"except that such term shall not include any transaction which includes expenses properly allocable to such transaction meet the requirement of --"
In the first sentence it appears that they are talking about "expenses", while in the second sentence is talking about the "transaction".
The meaning of the first sentence would be, "except that such term shall not include any transaction (as far as) expenses properly allocable to such transaction meet the requirement of --"
In other words it looks like by using the phrase, "to the extent", they are separating out certain expenses from the transaction.
I suspect that they have improperly used the phrase, but just wondered what your take on it would be.