Richard J. Borchers and Jane E. Borchers v. Commissioner of Internal Revenue

FAGG, Circuit Judge.

The Commissioner of Internal Revenue (the Commissioner) appeals a decision in favor of Richard J. Borchers and Jane E. Borchers. The Tax Court held the Borch-erses were entitled to an investment tax credit on computer equipment leased by Richard J. Borchers to their wholly-owned corporation in 1982. We vacate the decision and remand.

The Tax Court's opinion recognizes the Borcherses’ entitlement to an investment tax credit under 26 U.S.C. § 46(e)(3)(B) (1982) (amended 1988) depends on whether the stated terms of the computer equipment leases are controlling for tax…