- 9 - 280F(d)(4),3 however, section 274(d) requires taxpayers to substantiate: 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, entertainment, amusement, recreation, or use of the facility or property, or the date and description of the gift, (C) the business purpose of the expense or other item * * * Section 274(d) is an exception to the Cohan rule and prohibits the estimation of such expenses. Sanford v. Commissioner, 50 T.C. 823, 827-828 (1968), affd. per curiam 412 F.2d 201 (2d Cir. 1969); sec. 1.274-5T(a), Temporary Income Tax Regs., 50 Fed. Reg. 46014 (Nov. 6 1985). For deductions involving the use of listed property, the Commissioner is authorized to establish mileage allowances that are deemed to satisfy the substantiation requirements as to amount. Sec. 1.274(d)-1, Income Tax Regs. The specific mileage allowance for 1993 was 28 cents a mile. Rev. Proc. 92-104, 1992- 2 C.B. 583, 584. The specific mileage allowance for 1994 was 29 cents a mile. Rev. Proc. 93-51, 1993-2 C.B. 593, 594. Time and place of the mileage expense can be substantiated by a "contemporaneous log of business mileage or by otherwise establishing a taxpayer's business travel." Smith v. Commissioner, 80 T.C. 1165, 1173 (1983). Business purpose may be 3 Sec. 280F(d)(4) defines listed property to include passenger automobiles.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011