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3. Automobile Expenses
Respondent disallowed automobile and truck expenses for the
1992, 1993, and 1994 tax years of $3,794, $6,177, and $5,925,
respectively. Respondent disallowed the above-listed amounts
because of petitioner’s failure to substantiate that the amounts
were expended for business use of automobiles and trucks.
Petitioner did not offer any evidence at trial or present any
argument on brief regarding these amounts. Accordingly,
respondent’s determination on these items is sustained.
4. Depreciation Deductions
For the 1992 and 1993 tax years, petitioner depreciated the
full cost of vehicles used by shareholders Bone and Guerrero
without taking into consideration their personal use of the
vehicles. Petitioner attempted to justify the full amount of
depreciation it claimed on the grounds that the vehicles were
required to be available on call 24 hours a day.
Section 167 allows a deduction for the depreciation of
business equipment used in the course of a business or trade.
Section 280F, however, reduces the amount of depreciation that
can be claimed for passenger automobiles. Specifically, section
280F limits the allowable amount of depreciation to a multiple
equal to the percentage of actual business use. See sec. 1.280F-
2T(i), Temporary Income Tax Regs., 49 Fed. Reg. 42707 (Oct. 24,
1984).
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