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to provide that no deduction shall be allowed with respect to any
listed property as defined in section 280F(d)(4)--
unless the taxpayer substantiates by adequate records or by
sufficient evidence corroborating the taxpayer's own
statement (A) the amount of such expense or other item, (B)
the time and place of the travel * * *, (C) the business
purpose of the expense or other item, and (D) the business
relationship to the taxpayer of persons entertained, using
the facility or property, or receiving the gift. * * *
Listed property, as defined in section 280F(d)(4), includes
any passenger automobile or any other property used as a means of
transportation. In addition, section 274(d)(1) requires the same
substantiation for any deduction claimed "under section 162 or
212 for any traveling expense".
The elements required to substantiate a claimed
transportation expense deduction under section 274(d) include the
amount of each separate expenditure with respect to an item of
listed property, such as the cost of acquisition of the listed
property. Sec. 1.274-5T(b)(6), Temporary Income Tax Regs., 50
Fed. Reg. 46016 (Nov. 6, 1985). Although petitioner did not
maintain records that would satisfy the substantiation
requirements of section 274(d) for expenses incurred in
connection with the use of the automobile, petitioners did
satisfy the substantiation requirements for the cost of the
automobile by offering into evidence the original canceled check
issued for payment of the vehicle in the amount of $15,313. To
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Last modified: May 25, 2011