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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.
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Last modified: May 25, 2011