James & Marilyn Wadnizak - Page 5

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          gaining a benefit from the same expenditure both for a disabled             
          access credit and for another deduction or credit:  “In the case            
          of any amount of the credit determined under this section * * *             
          no deduction or credit shall be allowed for such amount under any           
          other provision of this chapter.”  Sec. 44(d)(7)(A).                        
               A taxpayer may elect to expense, rather than capitalize,               
          certain property used in a trade or business.  Sec. 179(a), (c).            
          The election must be made on the taxpayer’s first income tax                
          return for the taxable year to which the election applies.  Sec.            
          179(c)(1)(B); sec. 1.179-5(a), Income Tax Regs.  Once made, the             
          election is irrevocable and binding upon the taxpayer unless                
          revoked with the consent of the Commissioner.  Sec. 179(c)(2);              
          sec. 1.179-5(a) and (b), Income Tax Regs.  Taxpayers are                    
          prohibited from gaining a double benefit from a section 38                  
          credit:  “No credit shall be allowed under section 38 with                  
          respect to any amount for which a deduction is allowed under                
          subsection (a).”  Sec. 179(d)(9).  The regulations similarly                
          provide that “If a taxpayer elects to expense under section 179,            
          no section 38 credit is allowable for the portion of the cost               
          expensed.”  Sec. 1.179-1(g), Income Tax Regs.                               
               Section 179 and the regulations thereunder control in this             
          case.  Petitioners elected to expense the entire purchase price             
          of the x-ray machine on their 1995 tax return and were allowed a            
          deduction in the full amount of its cost.  They consequently are            

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Last modified: May 25, 2011