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identified. The receipt has "501" written on it. While the
record does not show when petitioners bought the Nebraska Street
property, petitioners reported income from it on their 1990 tax
return. Petitioners have not explained how a 1991 recording fee
relates to property they owned at least since 1990.
Petitioners introduced a receipt from Solano Superior Court
for copies and forms dated August 20, 1991. They did not show
what copies were made or whether they were made for a business
purpose.
Petitioners introduced a receipt for a $20 plumbing expense
dated September 26, 1991, a receipt for $75 paid to Sullivan
Industries, Inc., for an inspection fee for the Nebraska Street
property dated April 29, 1991, and about 23 receipts from stores
including Yardbirds, Orchard Supply Hardware, Newcomb & Son,
Inc., Homeclub, Payless Drug, Dan's Ace Hardware, Standard Brands
Paint & Home Decorating Center, and the Solano County Recorder's
Office. Mr. Frank testified that these expenses were for general
maintenance of the Nebraska Street property. We hold that
petitioners may deduct these expenses.
C. Points
A taxpayer may generally deduct interest paid or accrued on
indebtedness. Sec. 163(a). Interest is compensation for the use
or forbearance of money. Deputy v. Du Pont, 308 U.S. 488, 498
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