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Section 179(a) generally allows a taxpayer to elect to treat
the cost of section 179 property as a current expense in the year
the property is placed in service, within certain dollar
limitations.4 See sec. 179(b). The election must specify the
items of section 179 property to which the election applies and
the portion of the cost of each item which is to be taken into
account under section 179(a). See sec. 179(c)(1)(A); sec. 1.179-
5(a)(1) and (2), Income Tax Regs. Moreover, a section 179
election must be made on the taxpayer’s first income tax return
(whether or not the return is timely) or on an amended return
filed within the time prescribed by law (including extensions)
for filing the original return for such year. See Genck v.
Commissioner, T.C. Memo. 1998-105; sec. 179(c)(1)(B); sec 1.179-
5(a), Income Tax Regs. An election made under section 179 and
any specifications contained in such election may not be revoked
(modified or changed) without the Secretary’s consent. See sec.
179(c)(2); King v. Commissioner, T.C. Memo. 1990-548.
Petitioner argues that respondent’s refusal to consent to
petitioner’s request to revoke or modify his election so as to
include the recharacterized assets is contrary to the spirit of
4 The parties agree that the assets would have qualified as
sec. 179 property if petitioner had made an election with respect
to them on his original 1995 return. The parties also agree that
petitioner had sufficient income from the welding business to
have deducted $17,500, the maximum amount allowable under sec.
179 for the 1995 tax year.
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Last modified: May 25, 2011