- 7 -
(1933). A trade or business includes the trade or business of
being an employee. See O’Malley v. Commissioner, 91 T.C. 352,
363-364 (1988); Primuth v. Commissioner, 54 T.C. 374, 377-378
(1970). Section 262(a) provides that no deduction shall be
allowed for personal, living, or family expenses.
Section 179 provides that a taxpayer may elect to expense in
the year placed in service the cost of section 179 property
acquired for use in the active conduct of a trade or business.
Section 280F(d)(3)(A), however, provides that an employee may not
claim a section 179 deduction for listed property unless the
employee’s use of the listed property is “for the convenience of
the employer” and “required as a condition of employment.”
Listed property includes any computer or peripheral equipment.
See sec. 280F(d)(4)(A)(iv).
The “convenience of the employer” and “required as a
condition of employment” tests are essentially the same. See
Benninghoff v. Commissioner, 71 T.C. 216, 218 (1978), affd. per
curiam 614 F.2d 398 (5th Cir. 1980). In order to satisfy the
“condition of employment” requirement, the use of the property
must be required in order for the employee to perform the duties
of his or her employment properly. See sec. 1.280F-6T(a)(2)(ii),
Temporary Income Tax Regs., 49 Fed. Reg. 42713 (Oct. 24, 1984).
Whether the use of the property is so required depends on all the
facts and circumstances. The standard is an objective one. See
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011