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U.S. 252, 254 (1939); Ryman v. Commissioner, 51 T.C. 799, 802 n.5
(1969). Depreciation may generally be deducted to the extent
that the taxpayer proves that he or she actually expended capital
in the acquisition or improvement of the property. Helvering v.
F. & R. Lazarus & Co., supra at 254; Currier v. Commissioner, 51
T.C. 488, 492 (1968).
Allied does not deny that petitioner, not Allied, owned the
airplanes, and Allied does not contend that it provided funds for
the acquisition of the airplanes. Although Allied paid some
expenses of the airplanes during the relevant period, Allied has
not provided any proof that it had a capital investment in the
airplanes. Accordingly, Allied has failed to prove its
entitlement to any additional depreciation deductions with
respect to petitioner's airplanes.
For 1989, Allied argues that, based on the cost per hour for
each aircraft to which petitioner testified and the stipulated
number of business hours flown, Allied must have incurred
additional expenses. Allied's position is unsupported by the
record. Respondent determined that Allied was entitled to
$32,110 of airplane expenses for 1989. Based on a concession by
respondent, the allowance will be $36,360. At trial, Allied
introduced various receipts as evidence of airplane expenses.
The receipts totaled less than $16,000, and not all of the
expenses were paid by Allied. Without supporting independent
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