- 19 -
Petitioner also claimed other automobile-related expenses in
connection with his business of $756 for 1991 and $8,786 for
1992.
Respondent disallowed the entire amounts for depreciation,
insurance, and other automobile-related costs for lack of
substantiation under section 274(d).
No deduction shall be allowed with respect to listed
property, within the meaning of section 280F(d)(4), unless such
deductions satisfy the strict substantiation requirements of
section 274(d) and the regulations thereunder. Included in the
definition of listed property under section 280F(d)(4) is any
passenger automobile. Sec. 280F(d)(4)(A)(i). To substantiate a
deduction attributable to listed property, a taxpayer must
maintain adequate records or present corroborative evidence to
show: (1) The amount of the expense, (2) the time and place of
use of the listed property, and (3) the business purpose for the
use. Sec. 1.274-5T(b)(6), Temporary Income Tax Regs., 50 Fed.
Reg. 46016 (Nov. 6, 1985). To substantiate a deduction by means
of adequate records, a taxpayer must maintain an account book,
diary, log, statement of expense, trip sheets, or a similar
record, and documentary evidence which, 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 generally must be
written. Each element of an expenditure or use that must be
Page: Previous 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 NextLast modified: May 25, 2011