In February 1940, William C. Horrmann (plaintiff) inherited real property located on Howard Avenue. He spent $9,000 redecorating the property and moved into the home in October 1940. Soon after, he sold his prior personal residence located on Ocean Terrace. He continued to use the Howard Avenue home as his personal residence for two years. By October 1942, Horrmann decided to rent or sell the home. He moved out, intending to cease using the home as his personal residence. Despite consistent efforts to rent or sell the home, Horrmann did not sell it until June 1945. He attempted to take deductions for depreciation on the property between 1942 and 1945. During this period, the property depreciated at a rate of $500 per year. He also attempted to take deductions for maintenance and conservation fees incurred between 1942 and 1945. Finally, Horrmann attempted to deduct the capital loss he sustained on the sale. The Commissioner disallowed the deductions.