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office for which the requirements of section 280A(c)(1) are met.
Id.
Section 179 has its own substantiation and election
requirements. The taxpayer must maintain records reflecting how
and from whom the section 179 property was acquired, and when it
was placed in service. Sec. 1.179-5(a), Income Tax Regs. The
taxpayer is also required to elect on his first return for the
taxable year or on a timely filed amended return as a separate
item the total section 179 expense deduction claimed with respect
to all section 179 property selected and the portion of that
deduction allocable to each specific item. Id.
Petitioner indicated on Form 4562 attached to his Schedule C
that he elected to deduct computer equipment as a current expense
under section 179. Petitioner’s computer equipment qualifies as
section 179 property because it is tangible property to which
section 168 applies. Secs. 167(a)(1) and 168(f). The computer
equipment also qualifies as section 1245 property. Sec.
1245(a)(3).
Petitioner’s computer equipment is not listed property under
section 274(d)(4) because it falls under the home office
exception to section 274 under section 280F(d)(4)(B) and section
280A(c)(1), as discussed below. Therefore, the computer
equipment is not subject to the substantiation requirements of
section 274. Nevertheless, the computer equipment is subject to
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