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$5,700 for excavation and concrete work in connection with
the installation of an electrical system at his newsstand
on Wayne and Chelten Avenues and he paid $2,500 for the
wiring of that system. Respondent also concedes that
petitioner paid permit fees in the aggregate amount of $50
in connection with the electrical work.
We agree with respondent that, except for the permit
fees, the above payments represent capital expenditures
that must be recovered through depreciation. According to
respondent, petitioners are entitled to a depreciation
deduction of $497.50 with respect to the installation of
the steel plates ($1,750) and electrical system ($2,500
and $5,700), and a depreciation deduction of $1,435 for
the expenditures attributable to the construction of the
new newsstand ($4,100). The depreciation deductions
computed by respondent appear to be correct but, if
petitioners do not agree with the amount of these
depreciation deductions, then they will have an opportunity
to raise their disagreement during the proceedings under
Rule 155. Respondent also concedes that petitioners are
entitled to deduct permit fees in the aggregate amount of
$50.
Petitioners claim a deduction in the amount of $2,467
for supplies. In support thereof, petitioners introduced
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