J.J. Zand - Page 48

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          1974 and 1975 because he has not shown that it was an asset used            
          in his trade or business or for the production of income.                   
               In 1978 petitioner provided Cadillacs to Mr. Dinunzio (his             
          son-in-law), Mr. Dutton, and Clem and Priscilla Meier, each of              
          whom was a CDC employee.  Petitioner also had an automobile.  He            
          claimed depreciation on automobiles in the amounts of $9,311.30             
          in 1974, $8,280.80 in 1975, $7,339 in 1977, $13,865 in 1978,                
          $12,000 in 1979, $12,000 in 1980, and $645 in 1981.                         
               In the notices of deficiency respondent allowed automobile             
          depreciation of $4,072 in 1974 and $2,068 for each of the years             
          1978 through 1980.                                                          
               Petitioner presented no evidence with respect to the basis             
          claimed for the various automobiles reflected on his depreciation           
          schedules.  He and the employees admitted that the automobiles              
          were often used for personal purposes.  Mr. Dinunzio, Mr. Dutton,           
          and the Meiers sometimes used the automobiles provided by                   
          petitioner in their employment for CDC or its subsidiaries.                 
               Petitioner is not entitled to depreciation expenses on the             
          automobiles in excess of the amounts allowed by respondent                  
          because he has not shown the extent to which the automobiles were           
          used in his trade or business or his bases in the automobiles.              
               Petitioner is not entitled to a loss of $2,716 claimed on              
          the trade-in of automobiles for 1978.                                       







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