-6-
the supplemental stipulation of facts, petitioner established,
that he paid real property taxes in 1994, 1995, and 1997 in the
amounts of $1,781.04, $1,843.55, and $4,363.16, respectively. We
hold that he is entitled to deductions in these amounts for those
years. Further, petitioner is entitled to deductions for 1996 of
$200 for water expenses and for 1995 of $777.51 for repairs.
Although we realize petitioner incurred many more expenses in
connection with the operation of the rental property, in the
absence of any documentation we are unable to estimate additional
expenses that would ordinarily be deductible. Unfortunately,
petitioner has not been helpful, and, therefore, we cannot allow
any additional deductions because we have no basis for
determining how much was paid during the years in issue.
With respect to depreciation, section 167(a) and (c) allows
a taxpayer to claim a depreciation deduction for property held
for the production of income for which he established an adjusted
basis as provided in section 1011. The phrase “held for the
production of income” has the same meaning in section 212 and
section 167. Mitchell v. Commissioner, 47 T.C. 120, 129 (1966).
Section 168(b)(3)(B) provides that the straight line method
of depreciation is applicable to residential rental property and
section 168(c) provides for the applicable recovery period of
27.5 years for such property. Further, section 168(d)(2)
provides, with respect to residential rental property, that the
Page: Previous 1 2 3 4 5 6 7 8 Next
Last modified: May 25, 2011