Bill McDonald - Page 23

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          and maintenance bills, and a letter from his automobile insurance           
          provider noting the annual premium.  McDonald testified that,               
          during 1989, he drove his automobile 8,000 miles, 90 percent of             
          which represented business miles.                                           
               Under section 274(d), taxpayers are required to meet certain           
          substantiation requirements in order to be entitled to a                    
          deduction for certain business expenses.  Section 274(d)(4)                 
          (which is effective for taxable years beginning on or after                 
          January 1, 1986) requires substantiation for a taxpayer to be               
          entitled to deduct travel expenses.  McDonald’s substantiated               
          expenditures connected with his automobile for the 1989 year                
          exceed the total of the $250 monthly payments received from Gold.           
          McDonald offered no records or other evidence, however, of the              
          business use of his automobile other than his testimony, which              
          was expressed in terms of a rough estimate without any meaningful           
          detail or contemporaneous support.  McDonald has not met the                
          section 274(d) requirements necessary to show entitlement to                
          transportation deductions, and, accordingly, respondent’s income            
          determination regarding the monthly payments from Gold is                   
          sustained.  Rule 142(a).                                                    
               Maynard and McDonald both contend that the remainder of                
          payments from Gold to petitioners is attributable to Maynard,               
          even though $6,024 of the checks was written to McDonald from               
          Gold’s Bank of Lodi account.  Petitioners, here again, bear the             
          burden of showing error regarding respondent’s determination that           
          $6,024 is income to McDonald and $20,421 is income to Maynard.              

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