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and must state that portion of the deduction allocable to each
item. See sec. 179(c)(1)(A); sec. 1.179-5(a)(1) and (2), Income
Tax Regs.
Attached to petitioners’ return for 1994 are three Forms
4562, Depreciation and Amortization: two for “Law practice” and
one for “Real Estate Mgmt”. There is no Form 4562 for
petitioners’ farm activity. On the Form 4562 for “Real Estate
Mgmt”, petitioners list as 5-year property under part V, section
A, listed property depreciation, a 1994 Ford truck acquired in
October of 1994, with a cost basis of $20,507. For its use in
“Real Estate Mgmt” activity, $17,226 of the total cost basis of
the van is allocated to depreciation; petitioners claimed a
depreciation deduction of $2,960. Petitioners therefore allocated
84 percent ($17,226/$20,507) of the cost basis of the Ford van to
depreciation for its use in real estate management activities.
The $2,690 of depreciation for the van is part of a total of
$8,665 of depreciation claimed on line 20 of petitioners’
Schedule E.
On petitioners’ 1994 Federal income tax return, there is no
section 179 election for the 1994 Ford van for use in farming or
in any other activity. Petitioners explicitly depreciated the van
for its use in a different activity. Petitioners are not entitled
to claim any amount under section 179 with respect to the purchase
in 1994 of the Ford van. See Sharon v. Commissioner, 66 T.C. 515,
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