- 24 -
Commissioner, T.C. Memo. 1994-60, affd. without published opinion
78 F.3d 594 (9th Cir. 1996).
As a general rule, section 280F(d)(4) treats any computer or
peripheral equipment as listed property. Sec. 280F(d)(4)(A)(iv).
To claim expensing or depreciation for such property pursuant to
sections 179 and 280F, respectively, a taxpayer must establish
that business use exceeds 50 percent. Sec. 280F(b)(3); sec.
1.179-1(d), Income Tax Regs.10 Furthermore, section 274(d)(4)
precludes a taxpayer from claiming a deduction for listed
property as defined in section 280F(d)(4)(A), unless the taxpayer
meets the strict substantiation requirements of section 274(d)
and the regulations thereunder. See supra p. 19.
Section 280F(d)(4)(B) provides an exception to the listed
property rules for any computer or peripheral equipment used
exclusively at a regular business establishment. A home office
is treated as a regular business establishment provided the
office meets the requirements of section 280A(c)(1). Sec.
280F(d)(4)(B).
Based on the record and the evidence, petitioner has failed
to establish that his use of the home office satisfies one of the
three business-use exceptions under section 280A(c)(1). Indeed,
petitioner claimed deductions for the furniture and similar
office items, the computer and peripheral equipment, the
10 If business use of listed property falls to 50 percent or
less, then it is subject to the expensing and depreciation
recapture rules of secs. 179(d)(10) and 280F(b)(2), respectively.
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