- -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 totaled
Page: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 NextLast modified: May 25, 2011