- 6 - equipment. This Court ruled in Kwan v. Commissioner, T.C. Summary Opinion 2002-16, that petitioner was not entitled to any section 179 expense deduction for 1997 with respect to computers and computer equipment. Nevertheless, petitioner carried over $1,616 as a “deduction for 1997.” This is improper on its face. Petitioner had a collection of computer and computer equipment receipts. Respondent allowed petitioner a deduction of $1,465 on this issue. Petitioner did not show any credible business reason for the purchase of an additional computer and computer equipment to satisfy the requirement that the expenses were ordinary and necessary. In any event, because petitioner had no taxable income from a trade or business, he is not entitled to a section 179 deduction. Sec. 179(b)(3)(A). Accordingly, respondent’s determination on this issue is sustained. Respondent also allowed $2,200 of the $6,600 claimed as rent expense and disallowed the remaining $4,400 because petitioner did not establish that that amount was an ordinary and necessary business expense paid in 1998. Petitioner placed in evidence one lease running through March 31, 1998, which we assume continued on a month-to-month basis through August, and another lease for the remainder of the year. Petitioner admitted that there were other businesses that used the address covered by the second lease. Petitioner did not prove that he paid all the amounts in issue. Nor did he providePage: Previous 1 2 3 4 5 6 7 8 9 Next
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