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amount of $7,840; respondent disallowed the deduction in its
entirety. Finally, on his Schedules C for 1999 and 2000,
petitioner claimed depreciation deductions in the amounts of
$15,743 and $4,157, respectively; respondent disallowed these
deductions in their entirety.
Insofar as the deduction for “EDI fee, advertising,
telephone, etc.” is concerned, there is nothing in the record
that would permit us to allow any amount greater than that
already allowed by respondent in the notice of deficiency. See
Williams v. United States, supra at 560.
Insofar as the used file cabinets, chairs, and tables are
concerned, the cost of such office furnishings is generally
chargeable to capital account and then recovered through an
annual allowance for depreciation. See secs. 167 and 168.
However, such cost may be expensed pursuant to section 179 if the
requirements of that section are satisfied. However, such cost
may not be expensed in the absence of an election. Sec. 179(c);
Visin v. Commissioner, T.C. Memo. 2003-246; sec. 1.179-5, Income
Tax Regs.
In the present case, petitioner failed to make any election
under section 179.13 That being the case, petitioner may not
13 The election would typically be made using Part I
“Election To Expense Certain Tangible Property (Section 179)” of
Form 4562. Petitioner did not attach Form 4562 to his return,
nor did he otherwise make an election under sec. 179.
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