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Section 179(a) generally allows a taxpayer to elect to treat
the cost of section 179 property as a current expense in the year
the property is placed in service, within certain dollar
limitations. Sec. 179(b). The election must be made on the
taxpayer’s first income tax return (whether or not the return is
timely) or on an amended return filed within the time prescribed
by law (including extensions) for filing the original return for
such year. Sec. 179(c)(1)(B); Genck v. Commissioner, T.C. Memo.
1998-105; sec 1.179-5(a), Income Tax Regs. A taxpayer may not
elect to expense the cost of section 179 property in a year other
than the year in which the property is placed in service. Kay v.
Commissioner, T.C. Memo. 2002-197, affd. 85 Fed. Appx. 362 (5th
Cir. 2003).
Petitioners’ truck was placed in service in 2001, and
petitioners were required to make the election under section 179
on their 2001 return. Petitioners did not elect to expense the
cost of the truck on their 2001 return. Instead, they claimed a
$7,000 depreciation deduction for the truck, depreciating the
$35,000 cost of the truck over 5 years using the straight-line
method. Their attempt to make the section 179 election on their
2002 return was ineffective. See Kay v. Commissioner, supra.
We hold that petitioners are entitled to deduct $7,000 for
depreciation of the truck for each year in issue.
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