Susan E. Shores - Page 16

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               imposed by this chapter for the taxable year.                          
          Such an election shall be made in such a manner as the Secretary            
          may by regulations prescribe.                                               
               Section 1.179-5(a), Income Tax Regs., provides that the                
          election under section 179                                                  
               shall be made on the taxpayer's first income tax return                
               for the taxable year to which the election applies                     
               (whether or not the return is timely) or on an amended                 
               return filed within the time prescribed by law                         
               (including extensions) for filing the return for such                  
               taxable year. * * * [Emphasis added.]                                  
               Petitioner made no section 179 election for the computer on            
          her 1994 return or any amended return filed within the time                 
          prescribed by law, including extensions, for filing her 1994                
          return.  Alisobhani v. Commissioner, T.C. Memo. 1994-629; Subt v.           
          Commissioner, T.C. Memo. 1991-429.  Thus, pursuant to section               
          1.179-5(a), Income Tax Regs., petitioner should have filed an               
          amended return no later than October 15, 1995 (assuming valid               
          extensions), in order for petitioner to have properly elected               
          section 179 treatment.  Thus, petitioner is not entitled to an              
          expense deduction under section 179 for the computer.   Starr v.            
          Commissioner, T.C. Memo. 1995-190, affd. without published                  
          opinion 99 F.3d 1146 (9th Cir. 1996).                                       
               To reflect the foregoing,                                              


                                                  Decision will be entered            
                                             under Rule 155.                          





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