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issue is by way of depreciation, as allowed in the notice of
deficiency.
2. Held, further, Ps may not now elect to expense any
sec. 179 property they placed in service in either 1995 or
1996, because the period for making valid sec. 179 elections
for the years in issue has expired. Sec. 179(c), I.R.C.
1986.
Michael A. McGrath and Frances Y. McGrath, pro sese.
Emile L. Hebert III, for respondent.
MEMORANDUM FINDINGS OF FACT AND OPINION
CHABOT, Judge: Respondent determined deficiencies in
individual income tax against petitioners as follows:
Year Deficiency
1995 $28,590
1996 3,026
After concessions by both sides, the issues for decision1
are as follows:
(1) Whether petitioners may deduct under section 1622
the costs they incurred in 1995 in making permanent
1 The following adjustments are computational, i.e., they
depend on resolution of the issues for decision: (1) Earned
income credit for 1996, and (2) itemized deductions for 1995 and
1996.
2 Unless indicated otherwise, all section and chapter
references are to sections and chapters of the Internal Revenue
Code of 1986 as in effect for the years in issue.
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