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Section 179 property was, during the taxable years at issue,
tangible personal property and certain other property listed in
section 1245(a)(3). See secs. 179(d)(1), 1245(a)(3).
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. A
section 179 election must be made on the taxpayer’s first income
tax return for the taxable year the property is placed in
service, whether or not the return is timely, or on an amended
return filed within the time prescribed by law (including
extensions) for filing the original return for such year. Sec.
179(c)(1)(B); sec. 1.179-5(a), Income Tax Regs. The section 179
election must specify the total section 179 expense deduction
claimed and enumerate the portion of that deduction allocable to
each specific item. Sec. 179(c)(1); sec. 1.179-5(a)(1) and (2),
Income Tax Regs.
The election is normally made by attaching Form 4562,
Depreciation and Amortization, to the taxpayer’s return.16 Visin
v. Commissioner, T.C. Memo. 2003-246, affd. 122 Fed. Appx. 363
(9th Cir. 2005); see 2000 Instructions for Schedule C, Profit or
Loss From Business, Specific Instructions, Part II. Expenses,
16Part I of Form 4562 is entitled “Election to Expense
Certain Tangible Property (Section 179)”.
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Last modified: March 27, 2008