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facsimile machine and stand, and electricity without specifically
claiming a "home office".
Since petitioner's home office does not meet the
requirements of section 280A(c)(1), it follows that the computer
and the peripheral equipment are not excepted from the section
280F(d)(4)(B) definition of listed property. Therefore, to
depreciate such items petitioner must satisfy the strict section
274(d) substantiation requirements. Moreover, he must establish
that business use for such equipment exceeds 50 percent. Sec.
280F(b)(3).
Based on his testimony and the evidence introduced at trial,
petitioner failed to establish the percentage of business use for
the computer and peripheral equipment. Rather, at trial
petitioner merely asserted "these are office expenses" and then
proceeded to name each item purchased and the amount purportedly
incurred for it. Furthermore, even if petitioner had established
the business-use percentage for such items, he failed to satisfy
all of the stringent section 274(d) substantiation requirements.
The facsimile machine and the stand are not subject to the
listed property rules. Thus, to claim depreciation under section
167, petitioner must establish that he actually purchased and
used such assets in his business during the taxable years in
issue. Secs. 162, 167(a); secs. 1.162-1, 1.167(a)-1, Income Tax
Regs. At trial, petitioner testified that he purchased a
facsimile machine for use in his business. However, we are not
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