Thomas C. Sandoval, Jr. - Page 4




                                        - 4 -                                         
          occupied on a rent-free basis are not deductible.  Prince Trust             
          v. Commissioner, 35 T.C. 974 (1961).                                        
               B.   Seabrook and Indiana                                              
               In determining the allocation of basis between land and                
          improvements for Seabrook and Indiana, respondent relied on 1994            
          city government tax assessment records.  Petitioner complains               
          that respondent should have used tax assessment records for the             
          years in which each property was purchased, yet presented neither           
          those records nor any other credible evidence to rebut                      
          respondent’s determinations.                                                
               Petitioner contends that he is entitled to a 15-year                   
          recovery period for both Seabrook and Indiana.  Respondent                  
          contends, and we agree, that the appropriate recovery period for            
          Seabrook, placed in service in 1979, is 20 years (i.e., the                 
          midpoint of the Class Life Asset Depreciation System’s asset                
          depreciation range, which is 16-24 years).  See Sprint Corp. v.             
          Commissioner, 108 T.C. 384, 400 (1997); sec. 1.167(a)-                      
          11(b)(4)(i), Income Tax Regs.; Rev. Proc. 77-10, 1977-1 C.B. 548.           
          The recovery period for Indiana, placed in service in 1987, is              
          27.5 years.  Sec. 168(c).  We also sustain respondent’s                     
          determination that petitioner received $3,900 rental income                 
          relating to Seabrook.                                                       










Page:  Previous  1  2  3  4  5  6  Next

Last modified: May 25, 2011