- 8 -
United States v. Ron Pair Enters., Inc., 489 U.S. 235, 241
(1989); Fed. Home Loan Mortgage Corp. v. Commissioner, supra at
___; Burke v. Commissioner, 105 T.C. 41, 59 (1995). If the
statute is ambiguous or silent, we may look to the statute’s
legislative history to determine congressional intent.
Burlington N. R.R. v. Okla. Tax Commn., 481 U.S. 454, 461 (1987);
Fed. Home Loan Mortgage Corp. v. Commissioner, supra at ___;
Ewing v. Commissioner, 118 T.C. 494, 503 (2002).
Section 177 literally requires that the item to be amortized
be an “expenditure paid or incurred during a taxable year”. It
is clear that petitioner was not taxable in 1983 and 1984, when
the expenditures were made, and that those years were not taxable
years with respect to petitioner. Indeed, petitioner’s first
taxable year was 1985.
Section 177(a) and the regulations thereunder provide that
deductions be allowed ratably over a period of not less than 60
months beginning with the first month of the taxable year in
which the expenditure is paid or incurred. Section 1.177-
1(a)(2), Income Tax Regs. provides:
(2) The number of continuous months selected by
the taxpayer may be equal to or greater, but not less,
than 60, but in any event the deduction must begin with
the first month of the taxable year in which the
expenditure is paid or incurred. The number of months
selected by the taxpayer at the time he makes the
election may not be subsequently changed but shall be
adhered to in computing taxable income for the taxable
year for which the election is made and all subsequent
taxable years.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011