Listed Property, Section 179
Response to the following problem:
Terrell is a self-employed personal financial adviser. In March 2014, Terrell purchased a computer for $2,800. This was his only purchase of depreciable property in 2014. He uses the computer 60% of the time in providing financial advice to clients, 15% of the time managing his own investments, and the rest of the time for personal use.
a. Compute Terrell's maximum depreciation expense deduction in 2014 for the computer assuming he does not elect Section 179 in 2014.
b. Same as in Part a., except that Terrell elects the maximum Section 179 expense
c. Where on his tax return does Terrell deduct this depreciation expense?