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Charges:
07/22 Shelves & Cabinets 377.10
07/29 ADV Computer Systems 2,321.76
08/04 Service Merchandise 140.00
08/16 Office Depot 5.38
08/16 Office Depot 345.00
09/26 Office Depot 16.13
Items purchased in 1993:
Ken Crane 652.95
Wickes 705.00
Total $10,725.81
The parties agree that petitioner is entitled to deduct, as
section 179 expenses, the items listed as “Charges” above, the
cost of which totals $3,205.37.
With respect to furniture purchased from Wickes totaling
$705, the record shows that the furniture was purchased in 1993.
Petitioner did not begin his consulting business until 1994.
Section 179(d)(1) provides that the property must be acquired by
purchase for use in the active conduct of a trade or business.
Since petitioner was not engaged in his consulting business
during 1993, the purchase price of the furniture is not
deductible under section 179. See Reynolds v. Commissioner, T.C.
Memo. 2000-20. Respondent conceded, however, that petitioner is
entitled to a depreciation deduction of $121 for his Wickes
furniture (basis--$705, salvage–$100, useful life--5 years).
Petitioner also claimed a section 179 deduction for the cost
of a television, television stand, and VCR. Petitioner conceded
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