Opinion ID: 1992669
Heading Depth: 2
Heading Rank: 5

Heading: Disallowance of Interest Expense as to Assets From Prior Owner's Operating Company

Text: Finally, Appellants claim that the DPW erred in disallowing interest expense on the purchase of assets and liabilities acquired through TAW from SHF, the parent company that operated the two homes. More specifically, while DPW allowed Appellants to take depreciation on these assets, it did not consider these assets in determining the percentage of interest disallowance on the facilities' loan payment. Appellants contend that the cost and prior depreciation of these assets should be included in this computation. However, as Appellants concede in their brief, this issue is largely a factual one, and we are unable to conclude that the DPW's disregard of the TAW/SHF assets was based on factual determinations that were clearly erroneous. See Suburban, 146 Pa.Commw. at 140-41, 604 A.2d at 1190-91 (discussing lack of evidence to support Appellants' position). Therefore, for the reasons set forth above, we affirm the Order of the Commonwealth Court. PAPADAKOS, J., and MONTEMURO, J., who was sitting by designation, did not participate in the decision of this case. ZAPPALA, J., concurs in the result.