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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...)
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