Question

what would be included in the deduction for 2018?

Roger operates his consulting business out of an office in his home. Twenty per- cent of the 3,000-square-foot living area is devoted to the office. Roger inherited the home on Cody Way from his father who died on June 6, 2011. At that time, the home had a fair market value of $400,000 ($40,000 of which was allocated to the land). The Stewarts moved into the home in autumn of 2011, and Roger immediately set up his home office. The home's current fair market value is $500,000 ($50,000 allocated to the land). County land records reflect that Roger's father bought the land in 1972 for $6,000 and built the house in 1976 at a cost of $60,000. Roger depreciates the business use of his home using MACRS. Additional follows: 2018 costs related to the home are as $4,800 Utilities 2,900 Repairs and maintenance 2,300 Insurance The 2018 property taxes and mortgage interest are listed in item 15. In addi- tion to the repairs and maintenance noted above, Roger had the office repainted at a total cost of $1,200. Over the years, Roger has properly deducted the cost of all the furniture and equipment used in his office either as S 179 expense or bonus depreciation in the year those assets were placed in service. On March 5, 2018, Roger purchased a heavy-duty, fire-resistant file cabinet with security-vault features for $4.800, He made the acquisition to safeguard and maintain the privacy of client data, Con- sistent with past years, Roger prefers to avoid capitalizing and depreciating the cabinet if the law allows. Dog er naid $41,000 (including sales tax) for an Infiniti

Answer 1

For the purpose of section 179 deduction only file cabinet off $4800 will be allowed for the purpose of deduction. For the purpose of Section 179 to be applicable there should be a tangible personal asset to be purchased and also should be put to use in that same year for the deduction and any other expenses can not be claimed as deduction under the section 179. Therefore only $4800 will be allowed as deduction u/s 179.