Brookshire Brothers Holding, Inc. and Subsidiaries - Page 12

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          estimation, petitioner’s reclassification involved changing (1)             
          the recovery period over which depreciation deductions were to be           
          claimed from 31.5 or 39 years to 15 years and (2) the method by             
          which depreciation was to be calculated from straight line to               
          declining balance.  Respondent further avers that these                     
          alterations are not immaterial in that they implicate the timing            
          of deductions, are not equivalent to a change in useful life, are           
          not akin to the mere correction of a posting error, and do                  
          diverge from a consistently established method.                             
               It is also respondent’s position that the above change was             
          made without securing respondent’s consent.  Respondent relies on           
          the fact that petitioner neither filed a Form 3115 nor followed             
          any other prescribed administrative procedures for effecting such           
          a change.                                                                   
          III. Application                                                            
               The initial question raised by this matter is whether                  
          petitioner’s treatment of the gas stations as 15-year property              
          constitutes a change in accounting method within the meaning of             
          section 446(e) and related regulations.  If such inquiry is                 
          answered in the affirmative, a second question regarding whether            
          petitioner obtained consent for the change will be presented.               
               As previously indicated, a change in accounting method for             
          purposes of section 446(e) is generally defined to encompass a              
          change in the overall plan of accounting for income or deductions           

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Last modified: May 25, 2011