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BTLG Table of Contents > Sales and Use Tax Annotations > D > 210.0000 Demonstration, Display and Use of Property Held for Resale > Annotation 210.0116

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D

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210.0000 Demonstration, Display and Use of Property Held for Resale—General—Regulation 1669

Annotation 210.0116

(a) General

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210.0116 Erroneous Taking of Depreciation. The taking of depreciation on property for income tax purposes is generally regarded as evidence that the property was not purchased for resale. However, where the depreciation was taken in error, tax will not always apply. Tax will not apply if (1) the depreciation deduction was taken in error and the taxpayer did not realize a tax advantage therefrom, (2) there is convincing evidence that the property was purchased for purposes of resale, and (3) the taxpayer made no taxable use of the property while holding it for resale. 1/5/94.