davido@tekid.UUCP (David Olson) (08/26/83)
As one of those few weird computer jocks who don't own and don't intend
to purchase a personal computer, I haven't been following the discussion
of deductions for buying a PC except for noticing subject lines; however
in the paper today is an article containing some official Tax Court
decisions on said topic.
Quoting Tax Court Judge C. Moxley Featherston:
If property is owned and maintaned for both personal
and business purposes, a reasonable allowance for
depreciation may be deducted where such acquisition
and maintenance is primarily for business purposes,
with personal use merely incidental and relatively
insignificant. If, on the other hand, personal use
is primary and business use merely incidental, no
depreciation deduction is permitted.
Where both substantial business and personal use
exists, an allocation between the two will be
made....
The occasional use of such an expensive item as the
computer and line printer for typing resumes and tax
papers does not establish any substantial business
usage.
This ruling came as the result of an appeal by James Alman against an
IRS claim. During the year in dispute, Alman was an electrical engineer
taking assignments from Honeywell Inc. in St. Paul, Mn. He
subsequently moved to Florida to work for Martin Marietta Corp. He
claimed tax decudtions for depreciation on a computer, printer, and
calculator, asserting that all were used for business purposes such as
computing his tax liability, getting assignements from Honeywell,
doing work at home for Honeywell or keeping up with advances in
engineering.
The judge ruled that Alman had failed to establish the cost of the
equipment and that the equipment was used substantially for business
purposes.