- 11 -
Petitioners opened the Bakery in December 1995 and operated
it until some time in February 1997. On or about April 7, 1997,
petitioners sold the Bakery including the furniture, fixtures,
equipment, inventory, and supplies therefor.6
D. 1995 Tax Return
Petitioners timely filed their joint 1995 income tax return.
On this tax return they claimed a refund in the amount of
$25,658. They did not elect on this tax return to treat any
property they placed in service in 1995 as section 179 property,
because they believed such an election would not affect the
amount of the 1995 tax refund to which they were entitled.
E. 1996 Tax Return
Petitioners timely filed their joint 1996 income tax return.
On this tax return they claimed a refund in the amount of $3,571,
of which $3,026 was earned income credit. They did not elect on
5(...continued)
with a cost or other basis in the amount of $5,267. On opening
brief, respondent notes this discrepancy and concludes that
petitioners have conceded the $208 differential, but apparently
only if petitioners lose on the sec. 179 issue. On answering
brief, petitioners state that “In the respondent’s opening brief,
the respondent agrees that the petitioners purchased * * * $5,267
of Section 179 equipment in 1996.”
The parties are to resolve this matter in the proceedings
under Rule 155.
6 The record does not show whether petitioners claimed as
basis in determining their gain or loss on the 1997 sale any
amount that they deducted on their 1995 or 1996 tax returns. The
record also does not show what became of the Lease.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011