Desta Taye-Channell and Bruce C. Channell - Page 9

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          provided in the Code and cooperate with the Commissioner.  See              
          sec. 7491(a)(2).                                                            
               Although petitioners claimed that section 7491(a) applies,             
          petitioners failed to introduce sufficient evidence to shift the            
          burden to respondent.  Nonetheless, our findings in this case are           
          based on a preponderance of the evidence.  See Arevalo v.                   
          Commissioner, 124 T.C. 244 (2005).                                          
          ADA Tax Credit                                                              
               Section 44(a) is included in calculating the general                   
          business credit pursuant to section 38.  Sec. 38(a) and (b).                
          Section 44(a) provides a disabled access credit for an “eligible            
          small business”.  The amount of this credit is equal to 50                  
          percent of the “eligible access expenditures” of an “eligible               
          small business” that exceed $250 but that do not exceed $10,250             
          for the year.  Sec. 44(a).  Therefore, in order to claim the                
          disabled access credit, a taxpayer must demonstrate that (1) the            
          taxpayer is an “eligible small business” for the year in which              
          the credit is claimed, and (2) the taxpayer has made an “eligible           
          access expenditure” during that year.  If the taxpayer cannot               
          fulfill both of these requirements, the taxpayer is not eligible            
          to claim the section 44 credit for that year.                               
               “Eligible small business” is defined as any person that had            
          gross receipts of not more than $1 million for the preceding                
          taxable year or not more than 30 employees during the preceding             






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