- 3 - disabled patients without resort to the replaced panoramic x-ray machine. On petitioners’ joint Federal income tax return for taxable year 1995, petitioners claimed a $4,731 disability access credit for the x-ray machine under sections 38 and 44. Petitioners also claimed a $16,012 deduction for the x-ray machine on the Schedule C, Profit or Loss From Business, filed for petitioner’s dentistry practice. The deduction was claimed pursuant to an election made by petitioners to expense the full purchase price of the x-ray machine under section 179(a).1 In the statutory notice of deficiency, respondent’s sole adjustment was the disallowance of the disabled access credit. Respondent did not disallow the section 179(a) expense deduction. Subject to various limitations, an eligible small business is entitled to a disabled access credit for eligible access expenditures for the taxable year. Secs. 38, 44. The amount of the disabled access credit is determined under section 44 and is allowed as a general business credit under section 38. In general, expenditures made to comply with the Americans With Disabilities Act of 1990 (ADA), Pub. L. 101-336, 101 Stat. 327, are eligible access expenditures. See sec. 44(c)(1); Fan v. Commissioner, 117 T.C. 32 (2001). Taxpayers are prohibited from 1Petitioners also filed an amended return for taxable year 1995. The changes made by this return are not relevant to this case and are reflected in the statutory notice of deficiency.Page: Previous 1 2 3 4 5 6 Next
Last modified: May 25, 2011