- 39 -
case outside the purview of that general rule.26 Moreover, U.S.
Bancorp & Consol. Subs. v. Commissioner, 111 T.C. at 242, and Pig
& Whistle Co. v. Commissioner, 9 B.T.A. at 670, held that costs
paid or incurred to cancel a lease and enter into a new lease
must be amortized and deducted over the term of the new lease.
On the record before us, we find that petitioner is required to
amortize and deduct the expenditures at issue over the term of
the modified 1985 sale and leaseback agreements ending with
taxable year 2020.27
Based on our examination of the entire record before us, we
find that petitioner has failed to carry its burden of establish-
ing that the Court should not sustain respondent’s determinations
that the expenditures at issue should be capitalized and amor-
tized and deducted over the term of the modified 1985 sale and
leaseback agreements beginning with taxable year 1995 and ending
26In a footnote in petitioner’s opening brief, petitioner
advances for the first time an alternative argument that, because
petitioner’s minimum annual basic rent obligation was reduced
only throughout each of the years during which the 1995 tax-
exempt bonds were outstanding, the expenditures at issue should
be amortized and deducted over the term of such bonds, which were
to mature on June 30, 2013. Petitioner cites no authority in
support of that alternative argument. On the record before us,
we reject it.
27Respondent does not argue that, and we have not considered
whether, the amortization and deduction of the expenditures at
issue should begin with taxable year 1992. See supra note 25.
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