- 8 -
section 162 activity must be capitalized. See Sorrell v.
Commissioner, 882 F.2d 484, 487-488 (11th Cir. 1989), revg. T.C.
Memo. 1987-351; Lewis v. Commissioner, 861 F.2d 1232, 1233 (10th
Cir. 1988), revg. T.C. Memo. 1986-155; Fishman v. Commissioner,
837 F.2d 309 (7th Cir. 1988), revg. T.C. Memo. 1986-127; Johnsen
v. Commissioner, 794 F.2d 1157, 1162 (6th Cir. 1986), revg. 83
T.C. 103 (1984); Aboussie v. United States, 779 F.2d 424, 428 n.6
(8th Cir. 1985). The Court of Appeals for the Ninth Circuit
affirmed a holding of the Tax Court which found preopening
expenditures of a section 212 activity could be deducted.
Hoopengarner v. Commissioner, 80 T.C. 538 (1983), affd. without
published opinion 745 F.2d 66 (9th Cir. 1984).8
7(...continued)
as a loss when the asset was sold. See Commissioner v. Idaho
Power Co., 418 U.S. 1 (1974).
8 In Hardy v. Commissioner, 93 T.C. 684, 693 (1989), affd.
in part and remanded in part (10th Cir., Oct. 29, 1990), we
overruled our Opinion in Hoopengarner v. Commissioner, 80 T.C.
538 (1983), affd. without published opinion 745 F.2d 66 (9th Cir.
1984). The year in suit in Hardy was 1982, to which the 1984
amendment of sec. 195 did not apply.
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