- 13 -
substantially justified.
This Court ruled that the rent-to-own property involved in
these cases was not the kind of property which could be
depreciated using the income forecast method of depreciation.
See ABC Rentals I. That opinion was appealed to the Courts of
Appeals for both the Fifth Circuit and the Tenth Circuit. While
the Tenth Circuit reversed and remanded, the Fifth Circuit
affirmed without published opinion. See ABC Rentals, Inc. v.
Commissioner, T.C. Memo. 1994-601, affd. without published
opinion sub nom. El Charro TV Rental, Inc. v. Commissioner, 79
F.3d 1145 (5th Cir. 1996).
III. Conclusion
In view of the foregoing, we find and determine that the
position of the United States was not unreasonable and was
substantially justified. Accordingly, we hold that petitioners
are not entitled to administrative and litigation costs under
section 7430. Based on this holding, we need not consider
respondent’s alternative arguments that petitioners did not
prevail on the most substantial issue or set of issues presented
and that the administrative and litigation costs requested by
petitioners are not reasonable. Petitioners’ motion will
therefore be denied.
An appropriate order will be
issued.
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