- 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.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13
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