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performed services because such amounts represent nondeductible
commuting costs.
Generally, section 162 allows a deduction for all ordinary
and necessary expense incurred or paid in carrying on a trade or
business, subject to the strict substantiation requirements of
section 274(d). Section 274(d) requires substantiation of any
expense incurred or paid with respect to certain listed property.
Listed property includes automobiles. Sec. 280F(d)(4). Section
274(d) requires substantiation of these expenses either by
"adequate records or by sufficient evidence corroborating the
taxpayer's own statement". Sec. 274(d). The records must show
the amount, date, and business purpose of each expense or
business use. Id.; sec. 1.274-5T(b)(6), Temporary Income Tax
Regs., 50 Fed. Reg. 46016 (Nov. 6, 1985). Generally, in order to
be adequate, records must be written and must be prepared or
maintained such that a record of each element of an expenditure
or use that must be substantiated is made at or near the time of
such expenditure or use when the taxpayer has full present
knowledge of each element. Sec. 1.274-5T(c)(2)(ii)(C), Temporary
Income Tax Regs., 50 Fed. Reg. 46018 (Nov. 6, 1985). In the
alternative, each element of an expenditure or use must be
established by the taxpayer's own written or oral statement
"containing specific information in detail as to each element"
combined with corroborative evidence to establish such element.
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