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entitled to the pass through of any energy credit from HEH in
1996. Petitioners filed a petition in this Court on June 21,
2000.
G. HEH’s 1996 Income Tax Return
HEH filed its 1996 Federal income tax return (Form 1041,
U.S. Income Tax Return for Estates and Trusts) on March 30, 2001.
HEH reported that it had attached 130 Schedules K-1 to its
return. HEH attached to its return an amended Schedule K-1 which
shows the following allocations for petitioner: (a) Annuities,
royalties, and other nonpassive income before directly
apportioned deductions $100; (b) depreciation $120; and (c)
energy credit Form 3468 $535. HEH did not send the amended
Schedule K-1 to petitioner.
OPINION
A. Background and Contentions of the Parties
The parties dispute whether petitioners are entitled to
claim an energy tax credit passed through from HEH for 1996.
1. The Energy Tax Credit
Section 38(a)(2) and (b)(1), in conjunction with section
48(a)(1) and (a)(2)(A), provides an energy tax credit equal to 10
percent of the basis of energy property placed in service during
the taxable year. Individuals are not entitled to a residential
energy credit after November 4, 1990. Omnibus Budget
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