- 10 - B. Property Maintenance and Cleanup Business 1. Section 179 Deductions Petitioner claimed a $2,000 section 179 expense deduction for the purchase of a trailer and a $5,500 section 179 expense deduction for the purchase of a lawn mower. Respondent disallowed both deductions in their entirety on the grounds that petitioner failed to establish her cost in the trailer and in the lawn mower and the date on which each was placed in service. We have previously discussed the provisions of section 179 so we dispense with that matter. a. Trailer At trial, the only document that petitioner introduced regarding the trailer was a “receipt” that was virtually indecipherable and therefore not helpful. Petitioner was not even able to adequately explain the application of the receipt to the trailer supposedly purchased in 2000. We say “supposedly purchased in 2000" because the record demonstrates that petitioner claimed a $2,000 section 179 expense deduction for a trailer on her Schedule C for 1999, and there is nothing in the record to demonstrate that petitioner would have needed another trailer in 2000. b. Lawn Mower At trial, petitioner testified that she purchased a 32-inch walk-behind lawn mower for $5,500 in 2000. However, the onlyPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011