- 9 -
total amount of $1,315.41. We hold that petitioners are entitled
to depreciation deductions for 1993 and 1994 in the total amounts
of $522 and $6,810, respectively.
Insurance for 1993 and 1994
Petitioners claimed insurance expense deductions for 1993
and 1994 for amounts paid for their automobile insurance
policies. However, petitioners claimed and we have held that
they are entitled to deductions for car and truck expenses based
on the business standard mileage rates for 1993 and 1994, which
are claimed in lieu of operating and fixed costs such as
gasoline, oil, depreciation, maintenance and repairs, insurance,
and registration fees. See Rev. Proc. 93-51, sec. 5.03, 1993-2
C.B. 593, 594; Rev. Proc. 92-104, sec. 5.03, 1992-2 C.B. 583,
585. Accordingly, we hold that petitioners are not entitled to
any insurance expense deductions for 1993 and 1994.
Interest for 1993 and 1994
The parties stipulated that petitioners are entitled to
deductions for interest paid during 1993 and 1994 on amounts
borrowed to purchase the condominium unit. Petitioners presented
no evidence that they paid any deductible business interest
during 1993 and 1994 other than the stipulated amounts. We hold
that petitioners are entitled to interest expense deductions for
1993 and 1994 in the amounts of $528 and $4,529, respectively.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011