Bernard William Hvidding and Faleasiu E. Hvidding - Page 11

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          energy credit.  That is not sufficient to entitle petitioners to            
          claim the credit.  Richter v. Commissioner, supra.                          
               We conclude that HEH did not allocate income to petitioner             
          in 1996.                                                                    
               2.   Whether Petitioner Received Income From HEH in 1996               
               Petitioners contend that, unlike the taxpayer in Richter,              
          HEH allocated income to petitioner and he received income from              
          HEH in 1996.  We disagree.  The SEP suggests that, in 1997, HELCO           
          paid HEH $800 for the installation of petitioner’s solar heating            
          system, and that HEH credited that amount towards petitioner’s              
          first payment under the SEP in 1997.  It appears that the payment           
          was in 1997 and thus petitioner did not receive income (in the              
          form of a credit to his account) in 1996.  Therefore, petitioner            
          did not receive income from HEH and thus is not entitled to claim           
          an energy tax credit in 1996.                                               
               We conclude that petitioners are not entitled to an energy             
          tax credit of $536 in 1996 by virtue of the $800 payment from               
          HELCO to HEH in 1997.                                                       
          D.   Conclusion                                                             
               Based on Richter v. Commissioner, supra, and for the                   
          additional reasons stated above, we conclude that no part of                
          HEH’s income was allocable to petitioner and that HEH did not               
          allocate any part of its investment in qualifying energy property           







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