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petitioner is entitled to a section 179 deduction for the
computer and printer based on their cost of $3,689.
The purchase of the camera was, according to petitioner, for
the purpose of enhancing her performance as a sales manager for
Pacific Bell. Specifically, the camera was used to take pictures
for use in the clients' advertisements in the telephone
directory. Petitioner kept the camera locked in her desk at the
downtown office and the camera was used only in connection with
Pacific Bell advertisements. We conclude that the camera was
used exclusively for petitioner's business (as an employee) and
its purchase for $617.84 qualifies for a section 179 deduction.
As for the telephone, we do not believe that its purchase
was ordinary and necessary or that petitioner used the telephone
located in the home office only for business purposes.
Accordingly, petitioner is not entitled to a deduction for the
cost of the telephone.
Home-Office Deduction
In 1991, petitioner lived in an apartment in Glendale,
California. The apartment was approximately 900 to 1000 square
feet in size and consisted of two bedrooms, two bathrooms,
living room, kitchen, dining room, and hallway. Petitioner paid
rent of $1,030 per month for the apartment. Petitioner used the
smaller bedroom, which was about one fifth of the apartment, as
an office. Petitioner worked in her home office during the
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