Sherri A. Mulne a.k.a. Sherri A. Shannon - Page 12

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                  Section 179(a) allows a taxpayer to elect to expense, in the                         
            year placed in service, the cost of section 179 property.                                  
            Section 179 property includes any tangible property (to which                              
            section 168 applies) which is section 1245 property which is                               
            acquired for use in the active conduct of a trade or business.                             
            Sec. 179(d)(1).  Section 1245 property includes personal                                   
            property.  Sec. 1245(a)(3).  Section 280F(d), however, provides                            
            that an employee may not claim a section 179 deduction for                                 
            "listed property" unless the employee's use of the listed                                  
            property is for the convenience of the employer and required as a                          
            condition of employment.  In addition, the strict substantiation                           
            requirements of section 274(d) must be met with respect to listed                          
            property.  Listed property includes any computer or peripheral                             
            property.  Sec. 280F(d)(4)(A)(iv).  The camera and telephone are                           
            not listed property.                                                                       
                  The "convenience of the employer" and "condition of                                  
            employment" tests are essentially the same.  United States Junior                          
            Chamber of Commerce v. Commissioner, 167 Ct. Cl. 392, 334 F.2d                             
            660, 663 (1964).  In order to satisfy the condition of employment                          
            requirement, the use of the property must be required in order                             
            for the employee to perform the duties of his or her employment                            
            properly.  Sec. 1.280F-6T(a)(2)(ii), Temporary Income Tax Regs.,                           
            49 Fed. Reg. 42701, 42713 (Oct. 24, 1984).  Whether the use of                             
            property is so required depends on all the facts and                                       





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