- 17 -
respected for Federal income tax purposes. See Frank Lyon Co. v.
United States, 435 U.S. 561, 584-585 (1978); Hulter v.
Commissioner, 91 T.C. 371, 388 (1988). Country-Fed chose to
lease the trucks instead of purchasing them outright because the
lessors did not require a downpayment on leased trucks. Not
having to make a downpayment on the trucks allowed Country-Fed to
use its capital elsewhere in its expanding business. Of course,
leasing the trucks apparently12 resulted in additional tax
benefits to Country-Fed in the form of accelerated deductions.
That a transaction is shaped in part, however, by tax
considerations is not a sufficient reason for disregarding its
form. See Frank Lyon Co. v. United States, supra at 581.
We have considered the parties' remaining arguments and find
them irrelevant or unnecessary to reach. To reflect the
foregoing and the concessions of the parties,
Decision will be entered
under Rule 155.
12 Petitioner has moved to shift the burden of proof arguing
that the amounts in the notice of deficiency relating to allowed
depreciation deductions were arbitrary. Because we hold that
petitioner is entitled to rental deductions and not depreciation
deductions, with respect to the trucks, petitioner's motion to
shift the burden of proof is moot.
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