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Section 274(d) places strict substantiation requirements on
a taxpayer for claimed deductions relating to the use of "listed
property", which is defined under section 280F(d)(4)(A)(i) to
include passenger automobiles. Under this provision, any
deduction claimed with respect to the use of a passenger
automobile will be disallowed unless the taxpayer substantiates
various elements of the use by adequate records or other
sufficiently corroborating evidence. Sec. 274(d); see also sec.
1.274-5T(c)(2)(ii)(C)(1), Temporary Income Tax Regs., 50 Fed.
Reg. 46018 (Nov. 6, 1985). Pursuant to the regulations
promulgated under section 274, one of the elements required to be
substantiated is the amount of business use and the amount of
total use of the automobile for the taxable period, based upon
mileage. Makspringer v. Commissioner, T.C. Memo. 1994-468; sec.
1.274-5T(b)(6)(i)(B), Temporary Income Tax Regs., 50 Fed. Reg.
46016 (Nov. 6, 1985).
With respect to Mrs. Bradley's vehicle expenses, the record
shows that she worked for GC in 1992, and there is no evidence
that she was employed anywhere else or otherwise involved in
carrying on another trade or business. GC's records indicate
that Mrs. Bradley logged and was reimbursed for 661.8 miles of
business travel in 1992. Nonetheless, Mr. Bradley submitted a
computer-generated spread sheet listing daily business mileage
for Mrs. Bradley totaling 11,652 miles in 1992, which is nearly
11,000 more miles than reported to her employer. Mrs. Bradley
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Last modified: May 25, 2011