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Section 179(c)(1)17 delegates to the Secretary the authority
to prescribe by regulations the manner in which a taxpayer makes
a valid election under section 179. Section 1.179-5, Income Tax
Regs., provides, in pertinent part, as follows:
Sec. 1.179-5. Time and manner of making election.–-
(a) Election. * * * The election under section 179
and section 1.179-1 to claim a section 179 expense deduction
for section 179 property shall be made on the taxpayer’s
first income tax return for the taxable year to which the
election applies (whether or not the return is timely) or on
an amended return filed within the time prescribed by law
(including extensions) for filing the return for such
taxable year. * * *
As applied to the instant case, section 1.179-5, Income Tax
Regs., precludes petitioners from making valid section 179
17 SEC. 179. ELECTION TO EXPENSE CERTAIN DEPRECIABLE
BUSINESS ASSETS.
* * * * * * *
(c) Election.--
(1) In general.--An election under this
section for any taxable year shall–-
(A) specify the items of section 179
property to which the election applies and
the portion of the cost of each of such items
which is to be taken into account under
subsection (a), and
(B) be made on the taxpayer’s return of
the tax imposed by this chapter [chapter 1
relating to normal taxes and surtaxes] for
the taxable year.
Such election shall be made in such manner as the
Secretary may by regulations prescribe.
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