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During 1991, petitioner purchased an old IBM computer and
printer for her home office for $3,689. Petitioner was a
credible witness, and we believe, and so find, that she used the
computer and printer exclusively for business purposes to write
various reports and other documents required by Pacific Bell and
to keep up with the volume of work associated with her position
as sales manager.
Petitioner also purchased a Nikon camera in 1991 for
$617.84, which was used to take pictures of customers and/or
their businesses. These pictures were used in yellow page
advertisements. The camera was kept in petitioner's locked desk
drawer at the downtown office and was used only by sales
representatives for business reasons. Pacific Bell did not
provide a camera and did not require petitioner to purchase a
camera.
In addition, petitioner purchased a telephone for her home
office for approximately $180. The telephone was allegedly used
only for business calls. Petitioner did not have a separate
business telephone line in her home office.
On Form 4562 attached to her 1991 return, petitioner claimed
a section 179 expense deduction for a computer and printer,
telephone, and camera. According to the Form 4562, the cost
basis of the computer and printer was $3,700 and the cost basis
of the camera and telephone was $800.
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