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at trial that he did not use these items exclusively for business
purposes. Section 1.179-1(d)(1), Income Tax Regs., provides that
a section 179 expense deduction may be claimed only for the
portion of the cost attributable to business use and that no such
deduction is allowed if the business use is less than 50 percent.
Petitioner claims that he used, and intended to use, the
television and the VCR to make tapes, but he failed to show how
much this equipment was used for business. Consequently,
petitioner has not established that he is entitled to a deduction
for the cost of these items under section 179. Respondent
conceded, however, that petitioner is entitled to a depreciation
deduction of $40 with respect to these items (basis--$1,377,
salvage--$377, business use--20 percent, useful life--5 years).
Petitioner also claimed a section 179 deduction for payments
to Cerritos Trophy, Matt’s Glass & Mirror, Van Hygan & Smith,
Aaron Brothers, and Bradex totaling $2,817.96. Petitioner
contends these payments were for 25 decorative plates,
identification plaques and frames for the plates, and a glass
case to hold the plates. Respondent contends that petitioner has
failed to demonstrate any business use for these items and that
petitioner’s claimed deduction for their cost should not be
allowed. We agree that petitioner was required to substantiate
the business use of these items and that petitioner failed to do
so.
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