- 21 -
conclude, therefore, that petitioner is not entitled to
deductions for partnership losses in 1985, 1986, or 1987.
Investment Income Credit
Petitioner claimed a $1,000 investment tax credit on his
1985 tax return for the Chrysler. Respondent disallowed the
credit. Respondent argues that the Chrysler was not a "qualified
investment"; petitioner contends that it was.
In 1985, sections 38(a) and 46(a) allowed an investment tax
credit to a taxpayer making a "qualified investment". A
"qualified investment" must be section 38 property. Sec. 46(c).
Section 38 property is limited to certain property with respect
to which depreciation or amortization is allowable. Sec. 48(a);
sec. 1.48-1(a), Income Tax Regs. As observed above, petitioner
is not entitled to depreciate the Chrysler. Moreover, because
petitioner has not adduced, and we are not aware of, any
authority providing that the expenditure at issue is amortizable,
we conclude it is not. See Mann v. Commissioner, T.C. Memo.
1993-201. Accordingly, we conclude that petitioner is not
entitled to an investment tax credit in 1985.
Dependency Exemption
On his 1986 tax return, petitioner claimed a dependency
exemption for Anupam. Respondent disallowed the exemption.
Respondent argues that petitioner did not prove that he provided
Page: Previous 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 NextLast modified: May 25, 2011