- 32 - was replaced, and a new roof drain was added to the structure of the building. Lakeview's old roof was beyond repair because of a flaw in its design for drainage. The replacement roof is expected to last 20 years. As opposed to the roof at issue in Oberman Manufacturing Co., the replacement of petitioner's roof prolonged its useful life. The cost of the new roof is a capital expense. Ritter v. Commissioner, 163 F.2d 1019 (6th Cir. 1947); Georgia Car & Locomotive Co., 2 B.T.A. 986, 990 (1925); Ettig v. Commissioner, T.C. Memo. 1988-182; see also Badger Pipe Line Co. v. Commissioner, T.C. Memo. 1997-457; Drozda v. Commissioner, T.C. Memo. 1984-19. 5. Computer Respondent asserted in his trial memorandum and on brief that petitioner is not entitled to a deduction taken with respect to computer equipment in the amount of $723. (Although respondent uses the figure of $773 in his brief, based on the entire record the correct figure appears to be $723.) Since petitioner has not addressed this issue, he is deemed to have conceded it. See Rules 149(b), 142(a). 6. Accuracy-Related Penalty In the Notice of Deficiency, respondent determined that petitioner is liable for an addition to tax for a substantial understatement of income tax under section 6662(b)(2).12 12 On brief respondent argues that petitioner is also subject to a penalty for negligence or disregard of the rules or regulations under sec. 6662(b)(1), but there was no determination to this effect in the Notice of Deficiency or assertion in the answer. Respondent has not moved to amend the pleadings. In any (continued...)Page: Previous 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Next
Last modified: May 25, 2011