- 18 -
property and those which restore the property to its previous
condition. Id. We held that expenses for a patio, fence,
gate, floor, tile, window treatments, paneling, light fixtures,
bathroom fixtures and wash basins, tile, and a stove added to
the value or prolonged the life of the property and were properly
capitalized. Id. We found that the taxpayer's expenses for
painting and cleaning restored the property to its previous
condition and were deductible. Id. Here, the installation of
the gas range, dishwasher, furnace, heater, garage door, toilet,
sheetrock and tile in the bathroom, windows and screens, kitchen
cabinet and counters, general carpentry work, termite work and
floor refinishing added to the value of the home and must be
capitalized. See id. The expenses of painting the inside and
outside of the property restored the property to its previous
condition and are deductible. Id.
5. Whether Petitioners May Deduct Expenses Relating to
the Nebraska Street Property
Petitioners contend that they may deduct their expenses for
the Nebraska Street property.
Petitioner introduced two receipts from Truck Insurance
Exchange for $135.70 and $135. Both show the same policy and
agent number, and are dated February 15, 1992. Neither receipt
indicates the property to which it relates. Petitioners have not
shown that they incurred these expenses for a business purpose.
Another receipt was from the Solano County Recorders Office
dated March 14, 1991, for a recording fee for a property not
Page: Previous 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 NextLast modified: May 25, 2011