Eugene C. Joseph, Sr. - Page 7

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            1985).  In order to substantiate a deduction by means of adequate                         
            records, a taxpayer must maintain a diary, a log, 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.  Furthermore, each element of an expenditure or use that                         
            must be 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), as it applies to listed property, no deduction                            
            may be allowed for expenses incurred for use of a passenger                               
            automobile or any other property used as a means of                                       
            transportation on the basis of any approximation or unsupported                           
            testimony of the taxpayer.  See, e.g., Golden v. Commissioner,                            
            T.C. Memo. 1993-602.                                                                      
                  We must now determine whether petitioner is entitled to                             
            deduct expenses allegedly incurred in his business activity of                            
            negotiating oil and gas leases.  Petitioner provided no written                           
            substantiation for any of these expenses; however, this was not                           
            due to his own inexactitude.  To explain his lack of                                      
            substantiation, petitioner testified that all of his records had                          
            been destroyed in a fire.                                                                 

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