Kenneth G. Schladweiler - Page 12

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          for a new box for his truck; the box was not delivered or placed            
          in service until 1994.  Petitioner has failed to prove that                 
          respondent’s determination for 1993, as adjusted, is erroneous.             
               In 1994, one of petitioner’s drivers, Raymond Whitmore, was            
          in an accident with petitioner’s truck.  The truck rolled over              
          and required extensive repairs.  Also in 1994, petitioner paid              
          the balance of the cost of the new truck box ordered in 1993.               
               Petitioner submitted documentation to respondent of $46,067            
          to substantiate repair expenses of $30,917 claimed on his 1994              
          return.  The documentation as to $1,863 of the expenses failed to           
          substantiate the business purpose of the expense.  Of the                   
          remaining documentation, respondent determined that $25,328 was             
          for capital expenditures subject to depreciation; that is, the              
          remaining purchase price of the box ordered in 1993 and delivered           
          in 1994 and the cost of repairing petitioner’s truck after the              
               Petitioner offered no credible evidence to demonstrate that            
          respondent’s determination to capitalize the cost of the truck              
          box was in error.  Consequently, we sustain respondent on this              
          part of his adjustment to petitioner’s repair expense deduction.            
          We reach a different conclusion regarding respondent’s                      

               4According to respondent’s brief, the repair adjustment was            
          calculated as follows:  $46,067 submitted, minus $1,863 not                 
          substantiated, minus $25,328 capitalized, equals $18,876 allowed.           
          The $30,917 claimed on the return, minus $18,876 allowed, equals            
          an adjustment of $12,041.                                                   

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