-7-
In order to substantiate a deduction by means of adequate
records, a taxpayer must maintain a diary, a log, or a similar
record, and documentary evidence that, in combination, are
sufficient to establish each element of each expenditure or use.
Sec. 1.274-5T(c)(2)(i), Temporary Income Tax Regs., 50 Fed. Reg.
46017 (Nov. 6, 1985). To be adequate, a record must generally be
written. Each element of an expenditure or use that must be
substantiated should be recorded at or near the time of that
expenditure or use. Sec. 1.274-5T(c)(2)(ii)(A), Temporary Income
Tax Regs., 50 Fed. Reg. 46017 (Nov. 6, 1985).
Thus, under section 274(d) no deduction may be allowed for
expenses incurred for use of a passenger automobile on the basis
of any approximation or the unsupported testimony of the
taxpayer. Golden v. Commissioner, T.C. Memo. 1993-602.
The prerequisites to deductibility of vehicle expenses
incurred by an employee, therefore, are, first, that the expenses
be nonreimbursable outlays, and, second, that the expenses be
substantiated in accordance with the requirements of section 274.
For the 1991 taxable year, Mr. Bradley claimed a deduction
for actual vehicle expenses of $9,143. He could have been
reimbursed by his employer in the amount of $2,691.36 (9,968
business miles multiplied by 27 cents per mile). Thus, any
vehicle expenses in excess of $2,691.36 are nonreimbursable and
potentially deductible. However, Mr. Bradley substantiated the
amount of his vehicle expenses by presenting invoices and
canceled checks only in the amount of $3,567.74. Assuming,
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