- 7 -
the same year. Rev. Proc. 95-54, 1995-2 C.B. 450. Respondent is
sustained on this issue.
Section 167(a) permits a depreciation deduction for the
exhaustion and wear and tear of property used in a trade or
business. In calculating the depreciation deduction of $12,600
petitioner included: Office furniture ($1,900); Lexus automobile
($6,800); and two computers ($3,900). Of the amount claimed,
respondent allowed $4,579 comprising $1,900 for office furniture
and $2,679 for computers.
At trial, petitioner offered into evidence an itemized NEA
credit card summary report for 1996 showing a payment of $1,163
to P.C. Warehouse. After reviewing the NEA credit card summary
report, we find that petitioner substantiated the purchase of a
second computer in the operation of his business. Accordingly,
petitioner is entitled to a total depreciation deduction of
$5,742 for 1996.5
The last issue is one raised by petitioner in his petition.
Petitioner claimed that the amount of gross receipts on Schedule
C was overstated by $11,022. Thus, according to petitioner the
5 Petitioner elected to expense the cost of the two computers
purchased in 1996 under sec. 179 on Form 4562, Depreciation and
Amortization, and, therefore, is entitled to deduct the amounts
as reflected herein.
Page: Previous 1 2 3 4 5 6 7 8 9 Next
Last modified: May 25, 2011