Quinn v. Commissioner
United States Tax Court
Petitioner and his former wife acquired a house in Grosse Pointe Woods, Mich., in 1950 at a total cost of $ 51,065. Pursuant to a property settlement in May 1967 petitioner received sole ownership of the residence.
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Petitioner and his former wife acquired a house in Grosse Pointe Woods, Mich., in 1950 at a total cost of $ 51,065. Pursuant to a property settlement in May 1967 petitioner received sole ownership of the residence. Petitioner abandoned the residence in late 1967 and placed it on the market in January 1968 at a price of $ 65,000. The house was sold in April 1969 for $ 65,000. Held, petitioner is not entitled to deductions for depreciation and maintenance expense with respect to the house for the years 1968 and 1969 because the house was not held for the production of income.
1Opinion of the Court
OPINION
Respondent determined that petitioner’s former residence was not “held for the production of income” as that phrase is used in sections2 167(a)(2) and 212(2). Respondent, consequently, denied petitioner’s claimed deductions for depreciation and maintenance with respect to his former residence for the years 1968 and 1969. Respondent argues further that even if the house was held for the production of income, no deduction for depreciation is allowable because petitioner failed to establish a useful life and a salvage value for the house.
Petitioner maintains that after his divorce in May…
2Cases cited1 opinion
- Newcombe v. CommissionerUnited States Tax Court · 1970
3Cited by6 opinions
- Rice v. CommissionerUnited States Tax Court · 1994
- Murphy v. CommissionerUnited States Tax Court · 1993
- Gill v. CommissionerUnited States Tax Court · 1994
- Jones v. CommissionerUnited States Tax Court · 1978
- Madan v. CommissionerUnited States Tax Court · 1986
1 more not listed; retrieve them via the Exa API.