- 5 - failure to make a timely election on the return prevents him from deducting a business expense.3 Section 179(a) generally allows a taxpayer to elect to treat the cost of section 179 property as a current expense in the year the property is placed in service, within certain dollar limitations. An election under section 179 must be made on the taxpayer's original return for the taxable year or a timely filed amended return. Sec. 179(c)(1)(B); sec. 1.179-4(a), Income Tax Regs. The election must specify the items of section 179 property to which the election applies and the cost of each of the items. Sec. 179(c)(1)(A); sec. 1.179-4(a)(1) and (2), Income Tax Regs. After reviewing the record, we find that petitioner failed to make the requisite election. He failed to specify that he was claiming a section 179 deduction for the cost of the computer.4 We therefore hold that petitioner is not entitled to a section 179 deduction for 1992 for the cost of the computer.5 3 Respondent concedes that the computer was used by petitioner 80 percent of the time in connection with his real estate activity. Petitioner has not proved that he used the computer for business purposes more than 80 percent of the time. 4 Petitioner failed to attach to the return a Form 4562 on which the specific items to be deducted under sec. 179 must be listed. In addition, there is no indication on the face of the Schedule C that the claimed office expenses included the amount paid for the computer. In fact, we note that petitioner had difficulty at trial recalling which category of expenses the computer was claimed under. 5 Respondent concedes that petitioner is entitled to a depreciation deduction with respect to the computer for 1992. We (continued...)Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011