6
that each taxable year be treated independently. The language of
the regulations is clear and does not permit estimation of
current business use by reference to a prior year. In addition,
there is no indication on the record that the 82 percent was
based on adequate records or any evidence that the prior year was
representative of the year at issue.
Petitioners offered no further evidence at trial.
Accordingly, petitioners have not met the requirements of
substantiation under section 274(d). Respondent is sustained on
this issue.
Because petitioners failed to substantiate the automobile
expense, we need not address their general contention that they
are entitled to a business deduction for petitioner's mileage
expense because he was not reimbursed by the accounting firm. We
note, however, that a taxpayer ordinarily is not allowed a trade
or business deduction for expenditures to the extent that he has
a right of reimbursement from the corporation. Leamy v.
Commissioner, 85 T.C. 798, 809-810 (1985).
It is unclear from the record what the business expenses of
$600 are. Petitioner testified at trial that he stayed in Santa
Fe for approximately 3 days. However, he did not testify as to
the amount of the expenses incurred and did not produce any
receipts or documentary evidence for support. Therefore,
petitioners have failed to substantiate the $600 in business
expenses, and respondent is sustained on this issue.
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