- -12 In 1987, petitioners claimed a depreciation expense of $1,200 on their Federal income tax return which brought petitioner's basis in the Third Street Property building and all improvements to zero. Petitioners claimed total depreciation expenses in the amount of $43,318 in connection with the Third Street property. On the Schedule E attached to Mr. Moosbrugger's 1987 Federal income tax return, Mr. Moosbrugger reported rental income from the Third Street property in the amount of $7,425. He also deducted interest in the amount of $6,123, taxes in the amount of $2,183, and claimed a depreciation expense in the amount of $1,200. The rental income shown and the depreciation claimed are identical to the amounts disclosed by petitioners on their 1987 Federal income tax return. The interest and tax expenses claimed by Mr. Moosbrugger vary slightly from such expenses claimed by petitioners for the taxable year 1987. Mr. Moosbrugger's 1988 Federal income tax return did not reflect any depreciation expenses related to the Third Street property. On the law partnership's Form 1065, U.S. Partnership Return of Income for the year 1987, no depreciation was claimed for the Third Street Building. However, the partnership did claim an expense in the amount of $9,155 connected with a rental. On the law partnership's 1988 Form 1065, U.S. Partnership Return of Income, income from real estate activities totaledPage: 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