Kenneth G. Schladweiler - Page 7

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          and place of the use, and the business purpose of the use by                
          adequate records or sufficient evidence to corroborate the                  
          taxpayer’s own statement.  See sec. 274(d); sec. 1.274-5T(b),               
          Temporary Income Tax Regs., 50 Fed. Reg. 46014 (Nov. 6, 1985).              
          Adequate records for purposes of section 274(d) include an                  
          account book, diary, log, statement of expense, trip sheets, or             
          similar records.  See sec. 1.274-5T(c)(2), Temporary Income Tax             
          Regs., 50 Fed. Reg. 46017 (Nov. 6, 1985).  If a taxpayer does not           
          substantiate the travel expense as required by section 274(d), he           
          is not entitled to a deduction for the expense no matter how                
          plausible it may be that he paid the expense.  For expenses                 
          covered by section 274, the proposition is simple--a taxpayer who           
          cannot prove the expense loses the deduction.                               
               In this case, petitioner offered no probative evidence as              
          required by section 274(d) to substantiate his car and truck                
          expenses.  The only evidence in the record is petitioner’s                  
          general testimony concerning his use of the two vehicles and some           
          odometer readings for 1993, which are not consistent with the               
          mileage claimed on petitioner’s 1993 return.  This evidence falls           
          far short of the substantiation required by section 274(d).                 
          Respondent’s determination as to petitioner’s claimed car and               
          truck expenses, therefore, must be sustained.                               

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