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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