I have a client who purchased an iPhone for an employee (the $200 "upgrade") in April. The client's in the gas and oil industry and the employees are in very rural areas for the majority of their time and use the phone's GPS function to locate well sites as well as a safety measure for emergencies. We include it in listed property and account for the personal use of it. I have always depreciated the business use amount only. However this employee left after 2 months and we did not include any of the purchase price in her income. Can we still expense the business use amount through depreciation (of which there is very little) and can we have loss on the business amount as we did not receive anything upon disposal?