Mahendra K. Tandon - Page 14

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          computer.  Respondent allowed petitioner $1,543.50 of                       
          depreciation in 1985, 1986, and 1987.  Petitioner argues that he            
          used the Chrysler and the Rolls Royce in his trade or business.             
          Respondent counters that petitioner has not shown that he used              
          this property in a trade or business or held it for the                     
          production of income.                                                       
               Section 167(a) allows a depreciation deduction for the                 
          exhaustion, wear and tear of property used in a trade or business           
          or property held for the production of income.  Petitioner                  
          submitted mileage logs which are supposed to represent a record             
          of business mileage for the Chrysler and on a 1984 Cadillac.                
          None of the miles in the log are identified as belonging to the             
          Rolls Royce.  Petitioner did not testify, and presented no                  
          evidence, regarding the business use of the Rolls Royce.                    
               These logs are suspect as they do not appear to be prepared            
          contemporaneously with the occurrence of the supposed business              
          travel.  See sec. 1.274-5(c), Income Tax Regs.  The car the miles           
          supposedly relate to is often not identified.  Petitioner                   
          presented no evidence or testimony on how the mileage documented            
          in these logs related to his medical practice.6  Furthermore,               
          petitioner told Ms. Lippert that he lost all of his 1985 records            
          in a flood, but submitted mileage logs for 1985.  Petitioner                

               6  For example, there are entries for miles driven to a tax            
          attorney, to "houghnorwood", to a library, to a marina, to the              
          Tax Court in Wash., D.C., to K-Mart, and on a trip to Columbus.             

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