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entitled to a deduction in the amount of $450 for telephone
expenses. Id.
Petitioner did not claim any additional deduction for, or
present any other evidence to substantiate, expenditures for the
use of a home office.
12. Computer Cost
Although not claimed on her Schedule C, petitioner contends
that the $2,200 cost of the computer she purchased is deductible
under section 179. Petitioner offered a copy of her credit card
statement dated May 16, 1994, which indicates that she purchased
a computer for $2,200. Petitioner testified that she used the
computer exclusively for her business with APIA. On the basis of
this record, we find that petitioner purchased a computer for
$2,200 and used the computer solely for her activities with APIA.
Under section 179(a), a taxpayer may elect to treat the cost
of any section 179 property as an expense which is not chargeable
to capital account. Taxpayers electing to do so may deduct the
cost of such property in the taxable year in which the property
is placed into service. The aggregate cost which may be taken
into account under section 179(a) cannot exceed $17,500. Sec.
179(b)(1). Section 179(c)(1) provides that an election must:
(A) specify the items of section 179 property to
which the election applies and the portion of the cost
of each of such items which is to be taken into account
under subsection (a), and
(B) be made on the taxpayer's return of the tax
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