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Sec. 179(a). 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. Petitioner did not make the requisite election on her
1992 return because she failed to specify the items for which the
section 179 deduction was claimed.3 Therefore, we hold that she
is not entitled to a section 179 deduction for 1992.
After reviewing the checks submitted by petitioner, we are
satisfied that the amounts were paid for musical equipment,
consisting of covers and cases, that may be depreciated.
However, petitioner failed to provide an explanation for the
difference between the amount listed on her return ($2,100) and
the amount substantiated by the checks ($1,275).
We hold that petitioner is entitled to depreciate musical
equipment placed into service in 1992 in the total amount of
$425, which represents her one-third share of the total amount
shown on the checks. We instruct the parties to determine the
proper amount of petitioner's 1992 depreciation deduction in the
3 Petitioner failed to attach to her return a Form 4562
on which the specific items to be deducted under sec. 179 must be
listed.
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Last modified: May 25, 2011