Timothy Purchased a New Computer for His Consulting Practice on October

question 1

Essay

Timothy purchased a new computer for his consulting practice on October 15 ^th of the current year. The basis of the computer was $4,000. During the Thanksgiving holiday, he decided the computer didn't meet his business needs and gave it to his college-aged son in another state. The computer was never used for business purposes again. Timothy had $50,000 of taxable income before depreciation. What is Timothy's total cost recovery deduction with respect to the computer during the current year?

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Definitions:

American Jurisprudence 2d

A comprehensive encyclopedia of United States law that alphabetically arranges and summarizes legal principles.

Online

Connected to or available through the Internet; activities or services that can be accessed or performed digitally.

Persuasive Authority

Legal sources that, although not binding, may influence a court's decision because they present compelling arguments or interpretations of the law.

Secondary

Pertaining to information or sources that are derived from the analysis, evaluation, or interpretation of primary sources.