T.C. Memo. 2001-150
UNITED STATES TAX COURT
BROOKSHIRE BROTHERS HOLDING, INC. AND SUBSIDIARIES, Petitioner v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 4522-99. Filed June 22, 2001.
In the early 1990’s, P constructed, placed into
service, and began depreciating gas station properties.
P, an accrual method taxpayer, calculated its
depreciation deductions for tax purposes using the
modified accelerated cost recovery system (MACRS) of
sec. 168, I.R.C. On its returns for the years ended in
1993, 1994, and 1995, P classified and depreciated the
gas stations as nonresidential real property, with a
31.5- or 39-year recovery period. Subsequently, P filed
amended returns for those years reclassifying the gas
stations as 15-year property, based upon an Industry
Specialization Program Coordinated Issue Paper issued
by the Internal Revenue Service. R then remitted
refunds. P thereafter filed original returns for the
years ended in 1996 and 1997 which depreciated the gas
stations as 15-year property. R challenged this
treatment as an unauthorized change in accounting
method.
Held: In filing returns for the years ended in
1996 and 1997 which depreciated the gas stations as 15-
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