4) If you bought a used sofa in 2010 that you used for your business and your family and your Time-Space Percentage is 40% which of the following statements is correct?
a) You can use the Section 179 rule
b) You can depreciate it over 7 years
c) You can use the additional 50% depreciation rule
d) You can depreciate it over 5 years
Answer: B
You cannot use the Section 179 rule because you didn't use the sofa at least 51% of the time in your business. You cannot use the additional 50% depreciation rule because the sofa you purchased was used. Only new items are eligible for this rule. You must depreciate household furniture over seven years, not five.