- 11 - remaining after his subtraction from the total mileage is also a "guesstimate". We find that petitioner's "guesstimate" of business miles driven in the Lincoln automobile does not constitute an adequate record or other sufficient evidence with which to substantiate the business use of listed property as required by section 274(d). See sec. 1.274-5T(c)(2)(ii)(C), Temporary Income Tax Regs., supra. The Pickup Truck Of the 34,748 total business miles claimed for the use of the pickup truck, petitioner testified that he drove 29,001 miles to, from, and for Ro-Tile. The difference between the total mileage and the Ro-Tile mileage was "probably" associated with his Bakos & Dehr realty endeavor, petitioner testified. Petitioners provided no other records or corroborating evidence to substantiate the business use of the truck in the alleged real estate activity.5 Petitioners may not claim as a business 5Petitioners reported no partnership income or deductions for the taxable year. We assume that petitioner's real estate activities generated, at best, startup or preopening expenses. Sec. 195(c)(1). Startup or preopening expenses are not deductible under either sec. 162 or sec. 212. Hardy v. Commissioner, 93 T.C. 684 (1989); Goodwin v. Commissioner, 75 T.C. 424, 433 (1980) affd. without published opinion 691 F.2d 490 (3d Cir. 1982); Polachek v. Commissioner, 22 T.C. 858, 863 (1954). Even if substantiated, deduction of such expenses is specifically denied by sec. 195(a).Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011