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disallowed. Thus the correct allowable depreciation is
$16,339.62 instead of $15,995.11 allowed by respondent.
Section 167(a) allows as a depreciation deduction a
"reasonable allowance for exhaustion, wear and tear (including a
reasonable allowance for obsolescence) -- (1) of property used in
the trade or business, or (2) of property held for the production
of income." The burden of proving the claimed depreciation
deductions rests with petitioners. Rule 142(a); Welch v.
Helvering, 290 U.S. 111 (1933); see Hamilton & Main, Inc. v.
Commissioner, 25 T.C. 878, 883 (1956). In order to meet their
burden, they must affirmatively establish the cost or other basis
of the assets, their age, condition, remaining useful life, and
the portion of their cost or other basis which has been recovered
in prior years. O. Bee, Inc. v. Commissioner, T.C. Memo. 1959-
160; Moore v. Commissioner, a Memorandum Opinion of this Court
dated Aug. 14, 1953; see Smith v. Commissioner, 31 T.C. 1, 7
(1958).
(1) Chevrolet Van
Petitioner leased a Chevrolet van and placed it in service
in his locksmith business on December 20, 1990. Depreciation was
claimed on Schedule C for the van in the amount of $1,540.
Petitioner also claimed a deduction for lease payments in the
amount of $2,301 on the 1990 Federal income tax return for the
lease of the van. Petitioner testified that he did not treat the
lease as a purchase, but as a lease, and admitted that he was not
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