William L. Richter - Page 14

                                       - 14 -                                         
               Tax credits are a matter of legislative grace, and                     
          petitioner bears the burden of proving his entitlement to the tax           
          credit he claimed.7  Rule 142(a);  New Colonial Ice Co. v.                  
          Helvering, 292 U.S. 435, 440 (1934).  Petitioner maintains he is            
          eligible for the energy credit based upon his status as a                   
          beneficiary of HEH.  The parties do not dispute that, if HEH                
          placed depreciable solar energy property in service during 1995,            
          HEH became eligible for the energy credit through its ownership             
          of that property.  Secs. 38(b)(1), 46(2).  Petitioner asserts               
          that the apportionment of part of HEH’s energy credit to him was            
          proper because HEH was required to allocate $650 of HEH’s income            
          to him under the terms of the partnership agreement and HEH                 
          actually allocated $650 of income to him for 1995, as evidenced             
          by the amended Schedule K-1 for 1995.                                       
               While it is true that the partnership agreement reflects an            
          obligation on the part of HEH to allocate and distribute $650 to            
          petitioner, HEH’s obligation was subject to certain conditions              
          which required petitioner to identify several referrals, write a            
          letter of reference, and make his energy payments on time.                  
          Moreover, under the terms of the partnership agreement, HEH was             

               7Sec. 7491, which is effective for Court proceedings that              
          arise in connection with examinations commencing after July 22,             
          1998, places the burden on the Commissioner in certain                      
          circumstances.  However, petitioner has not contended, nor is               
          there evidence, that his examination commenced after July 22,               
          1998, or that sec. 7491 applies.                                            

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  Next

Last modified: May 25, 2011