- 8 - appraisals both value the space as a third-car garage, but, as respondent recognizes, this approach mirrors the valuation of the entire South Dakota property. And, as petitioners provided us with no evidence to support any other valuation, this is the best we can do on the record before us. See Rule 142(a); INDOPCO, Inc. v. Commissioner, supra; Welch v. Helvering, supra. 4. Recapture From the Sale of the South Dakota Property For 2000, petitioners deducted $346 as a depreciation allowance on the South Dakota property’s workshop pursuant to section 167. Respondent determined that the amount was subject to recapture. Because petitioners are entitled to some loss on the sale of the South Dakota workshop, there was no gain on its sale, and we need not reach a conclusion on this issue. See also sec. 1.1250-1(a)(5)(i), Income Tax Regs.; cf. secs. 121(d)(6), 1250(b)(3); sec. 1.121-1(e)(4), Example (5), Income Tax Regs. We therefore do not sustain respondent’s determination regarding recapture. 5. Itemized Deductions-2001, 2002, 2003 To the extent respondent made adjustments to petitioners’ itemized deductions because of changes determined in the notice of deficiency, those adjustments should be modified to reflect the other issues already conceded by the parties and those discussed herein.Page: Previous 1 2 3 4 5 6 7 8 9 10 NextLast modified: March 27, 2008