Barry D. and Suzanne B. Whalley - Page 20

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          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 shall be allowed for expenses                  
          incurred for the use of a passenger automobile on the basis of              
          any approximation or the unsupported testimony of the taxpayer.             
          See, e.g., Ellison v. Commissioner, T.C. Memo. 1994-437.                    
               For 1991 and 1992, petitioner claimed 100-percent business             
          use of his 1989 Chevrolet van.  Petitioner, however, has not met            
          his burden of proof with respect to this issue.  At trial,                  
          petitioner submitted two invoices for mechanical work done on the           
          van.  The first invoice, dated December 19, 1991, shows the                 
          odometer at 55,248 miles; the second invoice, dated March 25,               
          1992, shows the odometer at 59,978 miles.  Accordingly, the van             
          was driven 4,730 miles during approximately a 3-month period.               
          Petitioner concedes that he drove the van approximately 20,000              
          miles per year, which he alleges was for business.  For 1991 and            
          1992, however, petitioner reported gross income on his Schedules            
          C of only $4,524 and $4,892, respectively, which represent less             
          than 200 billable hours in connection with his investigation                
          business, yet he asks us to find as fact that all 20,000 miles              
          driven on his van were for business purposes.  Given this                   
          scenario, such a conclusion is inconceivable.  Furthermore,                 
          petitioner failed to establish his actual percentage of business            
          use for the van.                                                            




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