Greta Ann Clifton - Page 12

                                       - 12 -                                         
               Petitioner had three vehicles in 1985.  She testified that             
          she claimed deductions only for the expenses related to two of              
          her vehicles, the 1965 Mustang and the truck.  According to                 
          petitioner, she used both the 1965 Mustang and the truck for                
          business purposes and personal purposes.  Respondent determined             
          that petitioner would qualify for the standard mileage deduction            
          and allowed such deduction for 1985.  We believe that petitioner            
          used the 1965 Mustang in her Avon business and the truck in the             
          Orad business; however, petitioner presented no evidence as to              
          what portion of her claimed expenses was for business purposes              
          and what portion was for personal purposes.  Therefore, we                  
          sustain respondent's determination with respect to this item.               
          See Cobb v. Commissioner, supra; Shelley v. Commissioner, T.C.              
          Memo. 1994-432; Cady v. Commissioner, T.C. Memo. 1990-474.                  
               C.   Depreciation                                                      
               Respondent determined that petitioner was not entitled to              
          the depreciation deduction claimed on her 1985 Federal income tax           
          return.  Petitioner asserts that such deduction is allowable.               
               Section 167 provides, in part, for a depreciation deduction            
          with respect to property used in a trade or business.                       
          Depreciation allows the taxpayer to recover the cost of the                 
          property used in a trade or business or for the production of               
          income.  United States v. Ludey, 274 U.S. 295, 300-301 (1927);              
          Southeastern Bldg. Corp. v. Commissioner, 3 T.C. 381, 384 (1944),           
          affd. 148 F.2d 879 (5th Cir. 1945).  To substantiate entitlement            

Page:  Previous  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  Next

Last modified: May 25, 2011