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and 1993. Consequently, we sustain respondent’s determination as
modified.
Repairs
Petitioner claimed repair expenses of $28,903, $41,792, and
$30,917 for 1992, 1993, and 1994, respectively. In his notice of
deficiency, respondent determined that the claimed amounts should
be reduced by $8,276, $4,748, and $12,041, respectively.
Of the repair expenses disallowed for 1992, $203 was
disallowed for failure to substantiate either the payment of the
expense or its business purpose, and the balance was reclassified
by respondent as capital expenses. The expenses reclassified as
capital expenses were for wheels and axles installed on
petitioner’s dump truck and related work billed to petitioner in
a 1992 invoice3 totaling $10,324. Based on petitioner’s
posttrial submission, respondent has conceded that $4,143 of the
invoiced amount is deductible and that only $6,181 ($10,324 minus
$4,143) must be capitalized.
Of the amount disallowed for 1993, respondent concedes on
brief that an additional $60 has been substantiated as to amount
and business purpose. The balance of the adjustment is
attributable to a $3,800 downpayment made by petitioner in 1993
3In his memorandum brief, respondent described this invoice
as a 1994 invoice. Although the invoice is not in evidence, we
have treated respondent’s position on brief as a concession with
respect to 1992, and we have assumed that the invoice documented
1992 repairs, consistent with respondent’s position on brief.
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