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Therefore, based upon our analysis of the facts and
circumstances surrounding the transactions among petitioner, ATC,
and Alpha Telcom, we conclude that petitioner did not receive the
benefits and burdens of ownership with respect to the pay phones.
Because petitioner never received a depreciable interest in the
pay phones, he is not entitled to claim a depreciation deduction
under section 167 with respect to them.
ADA Tax Credit
For purposes of the general business credit under section
38, section 44(a) provides a disabled access credit for certain
small businesses. The amount of this credit is equal to
50 percent of the “eligible access expenditures” of an “eligible
small business” that exceed $250 but that do not exceed $10,250
for the year. Sec. 44(a). Therefore, in order to claim the
disabled access credit, a taxpayer must demonstrate that (1) the
taxpayer is an “eligible small business” for the year in which
the credit is claimed and (2) the taxpayer has made “eligible
access expenditures” during that year. If the taxpayer cannot
fulfill both of these requirements, the taxpayer is not eligible
to claim the credit for that year.
For purposes of section 44, the term “eligible small
business” is defined as any person that (1) had gross receipts of
no more than $1 million for the preceding year or not more than
30 full-time employees during the preceding year and (2) elects
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