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At trial, petitioner did not dispute the amounts shown
above. She claimed that she should be allowed additional expense
deductions of $1,000 for depreciation for that portion of the
house that was rented, repairs, and expenses she incurred in
evicting the tenant.
In the case of an individual, section 212 allows a deduction
for all the ordinary and necessary expenses paid or incurred
during the taxable year with respect to property held for the
production or collection of income and expenses for the
management, conservation, or maintenance of property held for the
production of income. Section 167(a)(2) allows as a depreciation
deduction a reasonable allowance for the exhaustion, wear and
tear, and obsolescence of property held for the production of
income. Depreciation is designed to allow the taxpayer to secure
a return for the cost of the property. United States v. Ludey,
274 U.S. 295, 300-301 (1927); Simon v. Commissioner, 103 T.C.
247, 253 (1994), affd. 68 F.3d 41 (2d Cir. 1995). Generally, the
annual depreciation amount is a fraction or percentage of the
depreciable basis of the property computed in accordance with the
method of depreciation used. Sec. 167(c)(1).
Petitioner presented no evidence to establish the amounts
spent for repair of her rental property; she did not describe the
nature of the repairs and presented no receipts or other
documentary evidence to corroborate her testimony. Likewise,
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