Allied Marine Systems, Inc. - Page 12

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               Petitioner testified that he maintained a contemporaneous              
          automobile log during 1988 but that the log was destroyed when              
          the Solomons house burned down in early 1989.  In place of the              
          original log, petitioner introduced a reconstruction of his                 
          claimed business use of the automobile.  Such a reconstruction is           
          allowed--                                                                   
               Where the taxpayer establishes that the failure to                     
               produce adequate records is due to the loss of such                    
               records through circumstances beyond the taxpayer's                    
               control, such as destruction by fire, flood,                           
               earthquake, or other casualty, the taxpayer shall have                 
               a right to substantiate a deduction by reasonable                      
               reconstruction of his expenditures or use.  [Sec.                      
               1.274-5T(c)(5), Temporary Income Tax Regs., 50 Fed.                    
               Reg. 46006 (Nov. 6, 1985).]                                            
          Respondent argues that petitioner's reconstruction is not                   
          reasonable.                                                                 
               Petitioner's 1988 Form 2106 indicates that his vehicle was             
          driven a total of 18,350 miles during 1988.  According to                   
          petitioner's 1988 Form 2106, 16,000 miles was business mileage,             
          1,500 miles was commuting mileage, and 850 miles was personal               
          mileage other than commuting.  The reconstruction presented by              
          petitioner indicates 16,203 miles of purported business travel.             
          Respondent contends that it is unreasonable to conclude that                
          petitioner (in addition to the commuting mileage) drove only 850            
          personal miles during 1988, especially when petitioner has failed           
          to offer any proof of another vehicle used for personal                     
          transportation.                                                             






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