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Koenig v. Commissioner, T.C. Memo. 1998-215; sec. 1.166-1(e),
Income Tax Regs.
Even if we had determined that petitioner had included the
unpaid fee in income, he has failed to establish that the debt
was worthless at the end of the taxable year in issue.
Petitioner testified that in 1998 he was still attempting to
collect the debt.
3. Car and Truck Expenses of $8,400
Petitioner claimed car and truck expenses of $8,400, which
respondent disallowed in full in the statutory notice. However,
respondent conceded on brief that "petitioner * * * should be
allowed a mileage expense deduction for his trips to Virginia
City."
Petitioner testified that he traveled to meet his production
assistant, who was located in Virginia City, about 40 miles away
from Reno, and that he did this on an average of three or four
times a week. Petitioner also testified that he had records of
his other expenses that made up the total of $8,400, but he
failed to produce them at trial or subsequently, while the record
was held open. Respondent has made no concession with respect to
any other claimed expenses in this category.
Relying on respondent's concession as a waiver under sec.
1.274-5T(c)(2)(iii)(B), Temporary Income Tax Regs., 62 Fed. Reg.
13990 (Mar. 25, 1997) and Rev. Proc. 91-67, 1991-2 C.B. 887,
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