- 13 - Year Amount of Depreciation Deducted 1983 $3,277 1984 3,072 1985 2,880 Respondent determined that the appropriate conversion rate from German deutschemarks to dollars at the time of the purchase was 2.13 deutschemarks to the dollar. She further determined that the useful life of the condominium was 25 years rather than 20, and that current depreciation deductions should be computed by using the straight-line method of depreciation. As a result, respondent reduced the depreciation deduction for each year as follows: Year Amount 1983 $1,743 1984 1,538 1985 1,346 The average conversion rate from deutschemarks to dollars during 1981 was 2.25 deutschemarks to the dollar.6 State Income Tax Refunds Petitioners received refunds of state income taxes as follows: Year Amount of Refund 1984 $1,538 1985 1,346 Petitioners did not include the refunds in income. Respondent increased petitioners' income for each year by the amount of the 6Statistical Abstract of the United States 887 (104th ed. 1984). See Fed. R. Evid. 201.Page: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Next
Last modified: May 25, 2011