DocketNumber: Docket No. 4247-78.
Citation Numbers: 41 T.C.M. 1370, 1981 Tax Ct. Memo LEXIS 540, 1981 T.C. Memo. 206
Filed Date: 4/27/1981
Status: Non-Precedential
Modified Date: 11/21/2020
MEMORANDUM FINDINGS OF FACT AND OPINION
DAWSON,
OPINION OF THE SPECIAL TRIAL JUDGE
FALK,
FINDINGS OF FACT
Some of the facts have been stipulated and they are so found. The stipulation of facts and the exhibit attached thereto are incorporated herein by reference.
Petitioners resided at Fallon, Nevada, at the time they filed their petition herein.
From May of 1971 until September 29 of the year in issue petitioner Juan L. Wilmoth 3 was employed as a shift superintendent by Dravo Corporation at the Henderson Tunnel construction project in Colorado. At the time petitioner began to work on the Henderson Tunnel project he knew that it would last a long time. Termination of his employment there within a fixed, short time was not foreseeable. He voluntarily left his job in Colorado in September to obtain new employment in the Washington, D.C. area.
*543 On or about March 26, 1974, petitioner purchased a 1974 Chevrolet Blazer. He used the vehicle to travel between his place of residence and the job site and in connection with his work at the site in Colorado. He did not carry tools to or from the job site with him in the Blazer. After leaving the job in Colorado in September, he did not use the vehicle for business purposes again. Between March 26 and September 29, 1974, he drove the vehicle 14,402 miles.
On their Federal income tax return for 1974, petitioners claimed an investment credit of $ 414.98 with regard to the purchase of the Blazer. Respondent disallowed the credit on the grounds that the vehicle was not used in business long enough to qualify for the minimum credit.
Petitioner deducted $ 1,459.65 for business use of the Blazer; $ 261.99 for tires, $ 308.41, for license and insurance, and $ 899.25 for depreciation. Respondent disallowed 74 percent of the amount claimed on the grounds that the vehicle was used only 26 percent for business.
OPINION
Petitioner purchased a 1974 Chevrolet Blazer on or about March 26, 1974, for use in traveling between his residence and his work and on the job. It is unquestioned*544 that the vehicle, upon its purchase, qualified, at least in part, as "section 38 property" (with respect to which the investment credit provided in section 46 may apply). See
Petitioner's employment at the Henderson Tunnel project was not "temporary" as that term has been defined by the courts. That is to say, its termination within a short period of time could not be foreseen. E.g.,
The evidence does not support a deduction for business use of the Blazer in an amount in excess of that determined by respondent. We must sustain respondent's determination.
In accordance with the foregoing,
1. All section references are to the Internal Revenue Code of 1954, as amended, unless otherwise indicated. ↩
2. Pursuant to the order of assignment, on the authority of the "otherwise provided" language of
3. Inasmuch as Karel J. Wilmoth is a party to this proceeding solely because she filed a joint return with her husband, for convenience we will hereinafter refer to Juan L. Wilmoth as the petitioner.↩