James & Marilyn Wadnizak - Page 4

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          disabled patients without resort to the replaced panoramic x-ray            
               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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