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Co. v. Commissioner, 54 Fed. Appx. 100 (3d Cir. 2002); sec.
31.3121(d)-1(b), Employment Tax Regs. Petitioner was a statutory
employee because at all relevant times he served as Western’s
president, worked in all significant aspects of Western’s
business, performed substantial services for Western in his
capacity as an officer, and obtained remuneration for such
services from Western as his needs arose.
IV. Pension Plan Recovery
Petitioners received and retained an $11,677 recovery that
belonged to the pension plan. Petitioners contend that these
funds were rolled over into an Individual Retirement Account, but
their testimony on this issue was unconvincing, and they did not
present any supporting documentation. Accordingly, the $11,677
must be included in income.
V. Schedule C Expenses
For depreciation purposes, automobiles are classified as 3-
year property. Rev. Proc. 83-35, 1983-1 C.B. 745. The period
for depreciation of an asset begins when the asset is placed in
service and ends when the asset is retired from service. Sec.
1.167(a)-11(e)(1), Income Tax Regs. Petitioners contend that the
automobile was not placed in service until 1990 because the
engine failed in 1985, and the automobile could not be used for a
few years. Petitioners further contend that, pursuant to section
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