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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.
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