John and Louisa A. Hodel - Page 7

          producing property in a farming business as the provisions of               
          this section would otherwise require."  Sec. 1.263A-4T(c)(6)(iv),           
          Temporary Income Tax Regs., supra.  "Once an election is made, it           
          is revocable only with the consent of the Commissioner."  Sec.              
          1.263A-4T(c)(6)(v), Temporary Income Tax Regs., supra.                      
               In the instant case, petitioners are deemed to have elected            
          out of the UCR when they deducted all the preproductive expenses            
          attributable to the nursery on the Schedules F attached to their            
          1987 through 1990 tax returns.  Petitioners have not filed any              
          requests to revoke this election.  Accordingly, we look to                  
          section 162 and the regulations thereunder to determine whether             
          petitioners may amend their 1986 through 1990 returns in order to           
          deduct some of the nursery expenses, capitalize others, and alter           
          the mix of deductible and capitalized expenses from year to year.           
               In Estate of Wilbur v. Commissioner, supra, we addressed the           
          issue of the revocation of an election to deduct farming expenses           
          incurred during the preproductive period under section 1.162-               
          12(a), Income Tax Regs.  The taxpayer in that case originally               
          thought he had no taxable income for years 1958 and 1960 and,               
          consequently, opted to capitalize preproductive expenses in order           
          to recover them in subsequent years through depreciation.  When             
          he learned during the course of an audit that he had taxable                
          income for those years, he sought to offset this income by                  
          deducting the expenses that he had originally capitalized in the            
          year in which the expenses were incurred.  We held that the                 

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