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Legal Services for 1993
The legal services claimed by petitioners for 1993 were part
of the settlement costs of the purchase of their condominium
unit. These legal services constitute a capital expenditure
which is added to petitioners' cost basis in the condominium
unit. To the extent the condominium unit is used for business
purposes, a portion of these legal services is deductible as part
of the depreciation deductions for the condominium unit. We hold
that petitioners are not entitled to any deduction for 1993 for
legal services.
Office Expense for 1993 and 1994
We find petitioners' records of their office expenses for
1993 reliable. For 1994, respondent disallowed only the portion
of the claimed office expense deduction which was claimed for a
computer monitor. This item was also claimed by petitioners on
one of their depreciation worksheets. Based on the record, we
sustain petitioners' claimed deduction for 1993 and respondent's
disallowance for 1994. We hold that petitioners are entitled to
office expense deductions for 1993 and 1994 in the amounts of
$1,487 and $845, respectively.
Rent or Lease of Business Property for 1993 and 1994
The parties have agreed that the amounts allowed and
conceded by respondent for 1993 and 1994 with respect to the
claimed rental expenses represent petitioners' condominium
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Last modified: May 25, 2011