Patton v. Commissioner
United States Tax Court
For 1995, P elected, under sec. 179, I.R.C., to expense a depreciable asset. R examined P's 1995 Federal income tax return and reclassified as depreciable three assets that P had originally classified as "materials and supplies". Following R's reclassification, P sought R's consent to expense the three reclassified assets under sec. 179, I.R.C. P was unable to revoke (modify or change) his election without R's consent.
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For 1995, P elected, under sec. 179, I.R.C., to expense a depreciable asset. R examined P's 1995 Federal income tax return and reclassified as depreciable three assets that P had originally classified as "materials and supplies". Following R's reclassification, P sought R's consent to expense the three reclassified assets under sec. 179, I.R.C. P was unable to revoke (modify or change) his election without R's consent. R refused to give P consent to revoke (modify) his original election. HELD: R's refusal to consent, considering the facts in this case, was not an abuse of discretion.
1Opinion of the Court
OPINION1
Gerber, Judge:
Respondent determined a deficiency in petitioner’s 1995 Federal income tax of $26,526, a penalty pursuant to section 6662(a)2 of $5,305, and a late-filing addition to tax pursuant to section 6651(a)(1) of $5,305. After concessions,3 the issue remaining for our consideration is whether respondent abused his discretion in refusing to grant consent to petitioner to revoke (modify or change) his 1995 election to expense depreciable business assets under section 179.
Background
Sam H. Patton (petitioner) resided in Houston, Texas, on October 22, 1999, the date his petition was…
2Cases cited6 opinions
- Estate of Gardner v. CommissionerUnited States Tax Court · 1984
- Buzzetta Constr. Corp. v. CommissionerUnited States Tax Court · 1989
- Lansons, Inc., Cross-Appellant v. Commissioner of Internal Revenue, Cross-AppelleeCourt of Appeals for the Fifth Circuit · 1980
- Lansons, Inc. v. CommissionerUnited States Tax Court · 1978
- Oakton Distributors, Inc. v. CommissionerUnited States Tax Court · 1979
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3Cited by13 opinions
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- Rosser v. Comm'rUnited States Tax Court · 2010
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