Edward R. Arevalo - Page 1

                                   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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