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rental use) represent just over 72 percent of the building’s
total floor area (13,500 square feet plus 6,000 square feet, all
divided by 27,000 square feet). Some use of the first floor
common areas and restroom facilities in connection with the
Bluesroom must also be taken into account. Petitioners have
failed to show that more than 25 percent of the building was used
for rental purposes. We hold, therefore, that petitioners,
subject to the passive loss restriction of section 469, are
entitled to deduct depreciation expenses for 1992 and 1993 under
section 167 with respect to only 25 percent of the building.
B. 5415 S. Broadway Property Depreciation Expenses
Petitioners failed to introduce evidence regarding their
alleged rental activity at the 5415 S. Broadway property.
Petitioners also failed to describe the nature and type of
property that they held and were depreciating. Consequently, we
sustain respondent’s determinations, in the notices of
deficiency, disallowing the Schedule E depreciation expenses
petitioners claimed with respect to the 5415 S. Broadway property
for 1992 and 1993. Rule 142(a).
V. Substantiation of Petitioners’ Other Schedules C and E
Expenses For 1992 and 1993
A. 5401-9 S. Broadway Property
1. Gardening/Repairs and Maintenance Expenses
On their Schedule E for 1992, petitioners deducted $475 of
gardening expense and did not claim any expenses for repairs and
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