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failed to provide on its attached statement to its tax return the
method of depreciation elected, the applicable Code section, the
year the rental property was placed in service, and the adjusted
basis of the rental property. Id. In addition, for year 1, the
taxpayer did not report any amounts on the line of Form 4562 for
“Property subject to section 168(f)(1) election”; instead, the
taxpayer reported an amount on another line labeled “Other
depreciation”. Id. With regard to this year, the Court held
that the taxpayer did not substantially comply with the
requirements of the temporary regulations. Id.
For a different taxable year (year 2), another taxpayer in
ABC Rentals of San Antonio, Inc. v. Commissioner, supra, attached
a statement to its tax return that provided the type of property
being depreciated, the method of depreciation, the year the
property was placed in service, and the basis of the property.
The taxpayer, however, did not state that the election was being
taken under section 168(f)(1) of the Code. Id. The Court held
that the absence of the Code section alone did not prevent the
taxpayer from substantially complying with the requirements for a
section 168(f)(1) election for year 2. Id.
B. The 1994 Tax Year
For the 1994 tax year, we hold that petitioner did not make
a valid election under section 168(f)(1)(A) and did not
substantially comply with the requirements of the temporary
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