124 T.C. No. 15
UNITED STATES TAX COURT
EDWARD R. AREVALO, Petitioner v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 13272-04. Filed May 18, 2005.
P entered into a contract with American
Telecommunications Co., Inc. (ATC). Under the terms of
the contract, P paid $10,000 to ATC and ATC provided P
with legal title to two pay telephones (pay phones). P
also entered into a service agreement with Alpha
Telcom, Inc. (Alpha Telcom), the parent company of ATC,
under which Alpha Telcom serviced the pay phones and
retained most of the profits.
1. Held: Because P did not have the benefits and
burdens of ownership with respect to the pay phones, P
did not have a depreciable interest in the pay phones.
Therefore, P is not entitled to claim a deduction for
depreciation with respect to the pay phones in 2001.
2. Held, further, because P’s pay phone
activities did not obligate him to comply with the
requirements set forth in either title III or title IV
of the Americans with Disabilities Act of 1990, Pub. L.
101-336, 104 Stat. 353, 366, P’s $10,000 investment in
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