Robert Walter Allison - Page 7

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          Sec. 274(d).  Listed property includes any passenger automobile             
          or any other property used as a means of transportation.  Sec.              
          280F(d)(4)(A)(i) and (ii).                                                  
               A taxpayer is required by section 274(d) to substantiate a             
          claimed expense by adequate records or by sufficient evidence               
          corroborating the taxpayer’s own statement establishing the                 
          amount, time, place, and business purpose of the expense.  Sec.             
          274(d).  Even if such an expense would otherwise be deductible,             
          the deduction may still be denied if there is insufficient                  
          substantiation to support it.  Sec. 1.274-5T(a), Temporary Income           
          Tax Regs., supra.                                                           
               1.  Car and Truck                                                      
               At trial, petitioner’s testimony as to the car and truck               
          expense was confusing and inconsistent.  As stated above, section           
          274 requires strict substantiation for deductions claimed for               
          transportation in a passenger car.  Petitioner testified that he            
          used the actual mileage to calculate the $4,900 car and truck               
          expense.  Steven Sheeley, the Internal Revenue Service agent who            
          handled petitioner’s audit, testified that petitioner explained             
          at audit that he calculated the amount of this deduction on a per           
          mile allocation; i.e., 20,000 business miles at 31 cents per                
          mile.  Despite the apparent conflict in testimony, the rule for             
          substantiating car and truck expenses is clear.  Petitioner is              
          required to provide a mileage log establishing the amount, time,            

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