Desta Taye-Channell and Bruce C. Channell - Page 1

                                  T.C. Memo. 2006-8                                   

                               UNITED STATES TAX COURT                                

              DESTA TAYE-CHANNELL AND BRUCE C. CHANNELL, Petitioners v.               
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      

               Docket No. 4166-04.             Filed January 18, 2006.                

                    The Telecommunication Relay Service (TRS) enables a               
               hearing-impaired individual to communicate with a hearing              
               individual over the telephone through the use of a relay               
               operator.  Ps subscribed to the AdaCom program which                   
               provided an alternative to the TRS through the use of a                
               computer rather than a relay operator.  On their 2000                  
               Federal income tax return, Ps claimed a disabled access                
               credit.  See sec. 44, I.R.C.  Ps also claimed a sec. 162,              
               I.R.C., trade or business expense deduction.  R disallowed             
               the credit and deduction.                                              
                    Held:  Because the AdaCom program was not acquired by             
               Ps in order for them to comply with the applicable                     
               requirements of the Americans with Disabilities Act of 1990,           
               Pub. L. 101-336, 104 Stat. 327, the AdaCom program is not an           
               “eligible access expenditure” for purposes of sec. 44(c),              
               I.R.C.  Svoboda v. Commissioner, T.C. Memo. 2006-1.                    
                    Held, further:  Ps are not entitled to deduct the cost            
               of the AdaCom program as a trade or business expense                   
               pursuant to sec. 162, I.R.C., as they did not use the AdaCom           
               program in a trade or business.                                        

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