Meredith and Shirley A. White - Page 2




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               (1) Are petitioners entitled to the depreciation deductions            
          claimed in Schedules C of their returns for the years at issue?             
          We hold that they are not.                                                  
               (2) Are petitioners entitled to the repair and maintenance             
          expense deductions claimed in Schedules C of their 1994 and 1995            
          returns?  We hold that they are not.                                        
                                     Background                                       
               Many of the facts have been deemed stipulated for purposes             
          of this case pursuant to Rule 91(f).2                                       
               Petitioners resided in Montgomery, West Virginia, at the               
          time the petition was filed.                                                
               Petitioners timely filed joint returns, Forms 1040, for the            
          years at issue.                                                             
               On July 2, 1987, petitioners purchased lots 31, 32, 33, and            
          34, section 5, Adena Village, located in Mt. Carbon, West Vir-              
          ginia, for $13,116.50.  They personally constructed a building              
          (Building) on those lots, having spent $23,809.90 during 1987 and           


               1(...continued)                                                        
          the notice of deficiency (notice) with respect to (1) the deduc-            
          tions that they claimed in Schedule C of their 1993 tax return              
          (return) for $200 of personal life insurance premiums and for               
          $2,400 of alleged pension and profit-sharing plan contributions             
          and (2) the respective charitable contribution deductions that              
          they claimed in Schedules C of their 1994 and 1995 returns that             
          should have been reported in Schedules A, Itemized Deductions, of           
          those returns.                                                              
               2All Rule references are to the Tax Court Rules of Practice            
          and Procedure.  All section references are to the Internal                  
          Revenue Code in effect for the years at issue.                              





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