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entitled to depreciate it. Therefore, petitioners are allowed to
deduct their lease payments of $2,301 for 1990. However, they
are not allowed a depreciation deduction.
(2) Chevrolet Cavalier
Petitioner claimed a section 179 deduction of $2,660 for the
Cavalier. Respondent disallowed this deduction, and instead
allowed depreciation of $1,347.78.
To claim a section 179 deduction, petitioner must have
acquired the property by purchase for use in the active conduct
of his trade or business. Sec. 179(d); Campana v. Commissioner,
T.C. Memo. 1990-395 (car purchased as family car and later also
used in taxpayer's trade or business does not qualify for section
179 deduction).
Petitioner did not purchase the Cavalier for use in his
locksmith business. He purchased it for personal use on November
1, 1986, and subsequently converted it to 56 percent business use
nearly 4 years later. Thus, petitioner is not entitled to a
section 179 deduction for the Cavalier.
We agree with respondent's allowance of depreciation in the
amount of $1,347.78 for petitioner's business use of the
Cavalier. Respondent accepted petitioner's 56 percent business
use. Respondent arrived at her depreciation figure by reducing
petitioner's basis in the Cavalier from $13,500 (cost) to $9,627
(fair market value) and by allocating 56 percent of the reduced
basis to business use. Petitioner offered no evidence as to the
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