Steven K. Han - Page 107





                                       - 98 -                                         

          mortgage in his name which he paid.  Petitioner asserts that                
          respondent did not cross-examine him on his testimony nor offer             
          any evidence that petitioner did not pay for the property in                
          1984.                                                                       
               Respondent contends that petitioner has failed to establish            
          the cost of the property or that he used his own funds to acquire           
          it.  Accordingly, respondent contends, petitioner has failed to             
          prove his basis in the property or his entitlement to the                   
          depreciation claimed.                                                       
               To show entitlement to a deduction for depreciation,                   
          petitioner must establish, among other things, the depreciable              
          basis of the property.  See Delsanter v. Commissioner, 28 T.C.              
          845, 863 (1957), affd. in part, revd. and remanded on another               
          issue 267 F.2d 39 (6th Cir. 1959).  The evidence in the record              
          relating to basis in the Lincoln Avenue II property consists                
          solely of petitioner’s self-serving statements, which we reject             
          because they are uncertain, ambiguous, and uncorroborated.  See             
          Frierdich v. Commissioner, 925 F.2d at 185; Tokarski v.                     
          Commissioner, 87 T.C. at 77.  Accordingly, petitioner has not               
          established basis and may not deduct depreciation with respect to           
          the Lincoln Avenue II property in 1988.  We therefore sustain               
          respondent’s determination.                                                 








Page:  Previous  88  89  90  91  92  93  94  95  96  97  98  99  100  101  102  103  104  105  106  107  Next

Last modified: May 25, 2011