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required or helpful for the position. Mr. Whitehurst testified
that he purchased, for example, respirators, cleaning supplies
for his automobile, insect repellant, ratchet wrenches, shovels,
safety glasses, hard hats, tape measures, and flashlights. Mr.
Whitehurst’s employer provided him with an annual $250 allowance
for “uniforms or whatever”.
A taxpayer may be entitled to a depreciation deduction for
exhaustion, wear, and tear of property used in a trade or
business. Sec. 167(a)(1); INDOPCO, Inc. v. Commissioner, 503
U.S. 79 (1992).3 A taxpayer may be entitled to a depreciation
deduction for computer software under section 167(f). A computer
or peripheral equipment, which is defined in section
168(i)(2)(B), is “listed property” under section 274(d)(4) as
defined under section 280F(d)(4)(A)(iv) and will be subject to
the substantiation requirements of section 274. A computer or
peripheral equipment may be excepted from the section 274
requirements under section 280F(d)(4)(B) if it is used
exclusively at a regular business establishment and owned or
leased by the person operating such establishment and only if the
requirements of section 280A(c)(1) are met with respect to the
regular business establishment.
3 Petitioners have not elected to deduct the cost of the
computer or the computer-related equipment as a current expense
under sec. 179.
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