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Sec. 6001; sec. 1.6001-1, Income Tax Regs.7 Accordingly, we
must determine whether petitioner has met his burden of proving
that such expenses satisfy the requirements of section 162(a).
For 1979 and 1980, petitioner deducted $23,000 and $30,000,
respectively, for business travel and entertainment expenses.
Petitioner's automobile expenses are included in these amounts.
The record, however, is unclear as to the specific amount that
petitioner claimed for automobile expenses. In the notice of
deficiency for 1979, respondent allowed petitioner as a
reasonable deduction 55 miles per week at 18.5 cents per mile or
$530. For 1980, respondent did not allow petitioner a deduction
for any expenses he incurred in connection with the car.
Respondent argues that petitioner did not maintain a mileage
log nor did he record the business purpose of his auto expenses.
Accordingly, respondent contends that petitioner failed to
establish the total business miles driven during the taxable
years in issue.
At trial, petitioner testified that he used his car to
transport clients to and from closings. He further testified
that he did not drive to work but used the subway to commute.
Furthermore, petitioner stressed that because he lived in
Manhattan, he did not need a car; that maintaining a car in New
7 Sec. 274(d)(4) was added to apply to years beginning after
1985. Sec. 274(d)(4) requires specific substantiation for
expenses "with respect to any listed property (as defined in
section 280F(d)(4))". Sec. 280F(d)(4) includes any passenger
automobile as listed property.
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