Edward R. Arevalo - Page 2

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               the pay phones is not an eligible access expenditure.                  
               Therefore, P is not entitled to claim the disabled                     
               access credit under sec. 44, I.R.C., for his investment                
               in the pay phones in 2001.                                             


               Edward R. Arevalo, pro se.                                             
               Catherine S. Tyson, for respondent.                                    


                                       OPINION                                        

               COHEN, Judge:  Respondent determined a deficiency of $1,999            
          in petitioner’s Federal income tax for 2001 that was attributable           
          to respondent’s disallowance of depreciation deductions and tax             
          credits claimed by petitioner with respect to two public pay                
          telephones (pay phones).  In an amendment to answer, respondent             
          asserted an increased deficiency of $30,247 and a penalty of                
          $6,049 under section 6662 as a result of petitioner’s failure to            
          report income from dividends and stock sales.  After concessions            
          by the parties, the issues for decision are:                                
               (1) Whether petitioner is entitled to claim a deduction for            
          depreciation under section 167 with respect to the pay phones in            
          2001 and                                                                    
               (2) whether petitioner is entitled to claim a tax credit               
          under section 44 for his investment in the pay phones in 2001.              
               Unless otherwise indicated, all section references are to              
          the Internal Revenue Code in effect for the year in issue, and              






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