Federal Home Loan Mortgage Corporation - Page 11

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          issue we might agree.5  But the issue here is whether petitioner            
          meets the substantive requirements of section 177(a).                       
               Petitioner argues that the language in section 177(a),                 
          referring to a taxable year, must be read in its full context.              
          Petitioner points to the following language in section 177(a):              
          “Any trademark or trade name expenditure paid or incurred during            
          a taxable year beginning after December 31, 1955”.  (Emphasis               
          added.)  Petitioner argues that this language merely establishes            
          the effective date of section 177.  See Act of June 29, 1956, ch.           
          464, sec. 4, 70 Stat. 406.  We disagree.  While the above quoted            
          language certainly specifies that section 177 applies only to               
          expenditures made after December 31, 1955, it also specifies that           
          qualifying expenditures be paid or incurred during a “taxable               
          year” after that date.  We cannot simply read this requirement              
          out of the statute.  Petitioner cites no authority for doing so,            
          and there is nothing in the legislative history indicating that             
          Congress intended such a limited application.                               

               5See Dougherty v. Commissioner, 60 T.C. 917 (1973) (election           
          held effective where filed in response to the Commissioner’s                
          indication of intention to include additional amount in the                 
          taxpayer’s return years after time prescribed in regulations for            
          making the election); see also Roy H. Park Broad. v.                        
          Commissioner, 78 T.C. 1093 (1982) (election filed in amended                
          returns more than 4 years after filing of original return allowed           
          where taxpayer was unable to secure required certification at               
          time original return filed); Bayley v. Commissioner, 35 T.C. 288            
          (1960) (election to compute gain on installment basis which was             
          made in amended petition to this Court held effective where                 
          taxpayer treated gain in original return as deferred under sec.             
          1034).                                                                      





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