- 6 -
make timely payments on the loan. Fleet filed the lawsuit
against no other person or entity.
OPINION
1. Depreciation
Respondent determined that TBP’s depreciable basis in the
buildings was $350,000 and that the buildings were fully
depreciated as of the beginning of the subject years. Petitioner
argues that TBP’s depreciable basis in the buildings was $926,500
and that they were not fully depreciated during any of the
subject years. We agree with respondent.
The depreciable basis of property is generally its cost, see
secs. 167(g), 1011, and 1012; Weis v. Commissioner, 94 T.C. 473,
482 (1990), and a taxpayer such as petitioner bears the burden of
proving the depreciable basis in property, see Rule 142(a).4
Section 6001 mandates that taxpayers keep permanent records
sufficient to establish their claims to all deductions.
Petitioner produced no records at trial establishing TBP’s
depreciable basis in the buildings. He attempted to prove that
basis primarily through his testimony. Petitioner testified
vaguely that the buildings cost Alpha “in excess of a million
4 Contrary to petitioner’s assertion on brief, we do not
find respondent’s determination arbitrary or without foundation.
We disagree with petitioner’s assertion on brief that “the
replacement cost figures introduced by respondent [at trial] were
so unrealistic that they amounted to an arbitrary and capricious
valuation”.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011