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:

Written Question

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FRCP 26

Refers to Rule 26 of the Federal Rules of Civil Procedure which pertains to the duty to disclose, discovery scope, and limits, and the basis for discovery.

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