Disabled Access Credit

[KBTS]

I am reviewing a potential client’s 2005 return. Client is a physician and installed a wheelchair access system in their office. Cost was $9,000. Prior accountant took Section 179 expense for the full cost of the system and also calculated a disabled access credit amount on form 8826 for the same expenses. Since client was subject to AMT, they could not take the disabled access credit and carried the amount forward to 2006.

Instructions for Form 8826 read:

“Denial of double benefit. To the extent of
the credit shown on line 6, the eligible
access expenditures may not be claimed as
a deduction in figuring taxable income,
capitalized, or used in figuring any other
credit.”

In other words – you can take the Section 179 expense or the credit but not both?

[Bees Knees]

That is the way I read it. In 99% of all cases, where you can claim a credit and a deduction, the deduction has to first be reduced by any credit claimed.

The only exception I can think of to this rule is the retirement savers credit, where you get a credit AND a deduction for the same amount. Otherwise, I can't think of any other deduction/credit that allows that.