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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