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depreciation on Schedule C and miscellaneous automobile expenses
on Schedules C and E.
Respondent disallowed petitioners’ deductions for automobile
expenses on Schedules C and E for 1993 and on Schedule C for 1994.
Respondent’s position is that petitioners have failed to
substantiate their deductions as required by section 274(d).
Petitioner did not maintain a log for his business automobile
mileage. He testified that he thought that maintaining a log was
unnecessary on the basis of his reading of the Master Tax Guide,
an unofficial publication of CCH Corporation; all he had to do was
“be able to substantiate the elements of the expense.”
At trial, petitioner attempted to substantiate his expenses
by presenting reconstructions of his business mileage. He
provided the Court with three documents for 1993 and one for 1994.
One of the 1993 documents is titled “Reconstruction of Miles
Driven”. It has seven columns, one each for month, activity,
destination, “R/T MILE”, tolls, gas, “OILMAINT/REP”, and hotel.
Under the activity column for each month are listed four items,
“LAW”, “R/E MGMT”, “FARM”, and “OFFICIAL”. Although petitioner
testified that he was unable to allocate mileage between his
various business activities, his “Reconstruction of Miles Driven”
purports to list the monthly mileage and expenses for each
category of activity and to determine the totals for each category
of activity for 1993.
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