Thomas C. Sandoval, Jr. and Bobbie J. Sandoval - Page 21




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          Co. v. Commissioner, 359 F.2d 191, 198 (2d Cir. 1966), affg. in             
          part, revg. in part, and remanding T.C. Memo. 1965-39;                      
          P. Dougherty Co. v. Commissioner, 159 F.2d 269 (4th Cir. 1946),             
          affg. 5 T.C. 791 (1945).  All five vehicles were available for              
          use in petitioner’s business when he bought them.  Petitioner               
          placed each vehicle in service for depreciation purposes when he            
          bought it.                                                                  
          E.   Whether Petitioners May Deduct More Depreciation for                   
               Business Property Than Respondent Allowed                              
               Petitioners contend that they may depreciate shop and office           
          equipment in amounts greater than they claimed on their returns             
          for the years in issue and greater than respondent allowed.                 
          Petitioners contend that respondent did not allow them to                   
          depreciate certain shop and office equipment that had useful                
          lives and cost bases which had not been fully recovered as of the           
          beginning of 1985.  We disagree.  Petitioners did not identify              
          the equipment to which their contention applies or show that                
          respondent had not already allowed a depreciation deduction for             
          that equipment.                                                             
          F.   Whether Petitioners May Deduct Net Operating Loss                      
               Carryforwards and Carrybacks and Use Investment Tax Credit             
               Carryforwards                                                          
               Petitioners contend they may deduct net operating loss (NOL)           
          carryforwards and carrybacks and use investment tax credit                  
          carryforwards.  We disagree.  Petitioners must prove the amount             
          of the NOL carryforward or carryback deductions claimed and that            





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