- 9 -
Section 179 permits a taxpayer to make an election to
expense the cost of section 179 property. Sec. 179(a). The
amount allowed a taxpayer as a deduction under section 179 can
not exceed the aggregate amount of taxable income of the taxpayer
for such taxable year which is derived from the active conduct by
the taxpayer of any trade or business during such taxable year.
Sec. 179(b)(3)(A). A taxpayer may carry over a deduction
disallowed under section 179(b)(3)(A) to another taxable year.
Sec. 179(b)(3)(B).
Petitioners' 1994 transaction report expense amounts do not
match the amounts reported on petitioners' 1994 Federal income
tax return even though both documents were prepared by Mr.
Tijerina's firm. Petitioner, using his 1994 transaction report,
testified that petitioners purchased refurbished stoves and other
equipment in 1994 for Villa Cabana at a total cost of $6,000.04.
Once again, we note the absence in the record of any
testimony or other evidence which would indicate that petitioners
attempted to substantiate their claimed deductions by contacting
the vendor from which they purchased the restaurant equipment.
Petitioners testified that they bought the equipment used, but
the record does not indicate the condition of the equipment.
Petitioners have failed to offer any reasonable evidentiary basis
by which this Court could make a close approximation or estimate
of petitioners' claimed deductions.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011