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to any claimed deductions. Rule 142(a); New Colonial Ice Co. v.
Helvering, 292 U.S. 435, 440 (1934); Welch v. Helvering, 290 U.S.
111, 115 (1933). This includes the burden of substantiating the
amount and purpose of the item claimed. Hradesky v.
Commissioner, 65 T.C. 87, 90 (1975), affd. per curiam 540 F.2d
821 (5th Cir. 1976); sec. 1.6011-1(a), Income Tax Regs.
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);
Durkin v. Commissioner, 872 F.2d 1271, 1276 (7th Cir. 1989),
affg. 87 T.C. 1329 (1986).
"'[D]epreciation is not predicated upon ownership of
property but rather upon an investment in property.'" Estate of
Franklin v. Commissioner, 544 F.2d 1045, 1049 (9th Cir. 1976)
(quoting Mayerson v. Commissioner, 47 T.C. 340, 350 (1966)
(emphasis added)), affg. 64 T.C. 752 (1975); see also Helvering
v. F. & R. Lazarus & Co., 308 U.S. 252 (1939). The taxpayer who
is entitled to the depreciation deduction is the one who suffers
the economic loss of his investment by virtue of the wear and
tear or exhaustion of the property--the one who has the economic
benefits and burdens of ownership. Frank Lyon Co. v. United
States, 435 U.S. 561 (1978); Leahy v. Commissioner, 87 T.C. 56
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