David operates his consulting business out of an office in his home. Twenty percent of the 3,000-square-foot living area is devoted to the office. David inherited the home on Cody Way from his father, who died on June 6, 2006, when it had a fair market value of $400,000 ($40,000 of which was allocated to the land). The Johnsons moved into the home in 2006, and David began using his home office in the same year. The homes current fair market value is $500,000 ($50,000 allocated to the land). County land records reflect that Davids father bought the land in 1969 for $6,000 and built the house in 1973 at a cost of $60,000. David depreciates the business use of his home using MACRS, treating the home as 39-year nonresidential reality. Additional information regarding the property for 2015 follows: Utilities $4,800 Repairs and maintenance 2,900 Property/casualty insurance 2,300 The property taxes and mortgage interest paid in 2015 on the home are listed in item 15 below. In addition to the repairs and maintenance noted above, David had the office repainted at a cost of $1,200. The furniture in the office, including business equipment (e.g., computer, fax machine, copier), was properly expensed in the year bought and has a zero basis. However, on March 5, 2015, David 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. If possible, David prefers to avoid capitalizing and depreciating the cabinet. 5. On February 4, 2014, David paid $41,000 (including sales tax) for a used Infiniti crossover SUV (gross weight under 6,000 pounds), which he uses 90% of the time for business. No trade-in was involved, and he did not claim any 179 expensing of the cost. Last year, David elected to use the actual operating cost method to compute deductible expenses for his business use of the Infiniti. Under this method, he depreciates the SUV using MACRS (half-year convention). (Hint: See Table 3 in the Instructions to Form 4562.) His operating expenses for the Infiniti for 2015 are as follows: Gasoline $3,300 Auto insurance 1,600 Repairs 240 Auto club dues 180 Oil changes and lubrication 120 License and registration 60 During business use, David received three moving traffic violations (total fines of $680) and incurred tolls and parking charges of $440. The Infiniti was driven a total of 14,500 miles during 2015 (mileage was incurred evenly during the year).