Bill R. and Carolina N. Thomas - Page 5

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          section 274(d), which prohibits the estimation of expenses for              
          travel or deductions with respect to certain listed property.               
          Sec. 274(d).  Listed property includes automobiles.  Sec.                   
          280F(d)(4).                                                                 
               Section 274(d) requires substantiation of these expenses               
          either "by adequate records or by sufficient evidence                       
          corroborating the taxpayer's own statement."  Sec. 274(d).  The             
          records must show the amount, date, and business purpose of each            
          expense or business use.  Id.; sec. 1.274-5T(b)(6), Temporary               
          Income Tax Regs., 50 Fed. Reg. 46016 (Nov. 6, 1985).  The                   
          regulations provide that other evidence may be offered in the               
          form of sampling.  Taxpayers may use adequate records maintained            
          for "a portion of the taxable year" to substantiate business use            
          for the entire year if they "demonstrate by other evidence that             
          the periods for which an adequate record is maintained are                  
          representative of the use for the taxable year".  Sec. 1.274-               
          5T(c)(3)(ii)(A), Temporary Income Tax Regs., 50 Fed. Reg. 46021             
          (Nov. 6, 1985).                                                             
               Petitioner's daily calendar does not meet the requirement of           
          adequate records to substantiate petitioners' claimed deduction             
          for vehicle expense.  While it contains dates and client names,             
          it fails to indicate mileage or business purpose for any of the             
          entries.  In the alternative, petitioners contend that 82 percent           
          represents a sampling of mileage from a prior year and is                   
          sufficient evidence, arguing that the regulations do not mandate            




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