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Respondent determined a deficiency of $959 in petitioner’s
1997 Federal income tax. The issue for decision is whether
petitioner is entitled to a fuel tax credit in excess of the
amount allowed by respondent.
Background
Some of the facts have been stipulated and are so found. At
the time the petition was filed, petitioner resided in Weippe,
Idaho.
Petitioner is and was during 1997, self-employed. His
business involves removing and transporting timber logs from the
location of harvest to lumber mills. During the year in issue,
petitioner transported the timber logs in a truck specifically
designed for that purpose (the truck). The truck, which is
powered by a diesel engine, was licensed for highway use during
1997 and was so used. The truck is equipped with 2 separate fuel
tanks that service its diesel engine.
The truck is also equipped with a mechanical loader that is
permanently mounted behind the cab (the loader). The loader is
used to load the logs at the harvest sites and to unload the logs
at the lumber mills. The loader is powered by a power take-off
connected to the truck’s diesel engine. Consequently, the same
diesel engine that propels the truck also powers the loader.
Although there are 2 fuel tanks, neither tank is dedicated to one
or the other usages of the diesel engine.
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