- 12 -
petitioner’s risk of loss was the combination of the ATC pay
telephone agreement and the Alpha Telcom service agreement,
allowing petitioner to sell legal title to the telephones back to
ATC for a fixed formula price.
Because petitioner never owned a depreciable interest in the
pay telephones, he is not entitled to claim depreciation
deductions under section 167 with respect to them. See Crooks v.
Commissioner, supra; Arevalo v. Commissioner, supra.
B. ADA Tax Credits
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).
In order to claim the disabled access credit, a taxpayer
must demonstrate: (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 who: (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)
Page: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: November 10, 2007