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concedes that petitioner used these cars (except the alleged VW)
50 percent for business.
Petitioner insists that for personal trips he used only his
1957 VW, but admitted that the VW had high mileage and was not
"reliable". Neither the revenue agent nor the Court was shown
any reliable evidence the VW even existed. Therefore, in the
absence of any objective evidence regarding petitioner's use of
the Porsche and the rented cars for business, it is reasonable to
infer a substantial degree of personal use of these cars. We
accept respondent's determination of 50-percent business use of
these cars.
Petitioner acquired the Porsche in 1982 for $10,000. In
late 1988 he took the Porsche to Perl's Body Shop for major
repair work, which Perl's failed to perform after completely
dismantling the car. Petitioner retrieved the car, including all
the disassembled parts, in 1990.
Respondent disallowed the following amounts as business
expenses in 1988 for work on the Porsche:
Item Amount
Perl's Body Shop $3,400
Red McClintock 146
Stoddard Imported Cars 7
Total 3,553
As stated, Respondent disallowed the entire amount as a
business expense, but determined that 50 percent could be
depreciated.
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