- 81 -
Assuming arguendo that petitioners had established that they
used petitioners’ two automobiles in a trade or business or that
they held such automobiles for the production of income, peti-
tioners must satisfy the substantiation requirements of section
274(d)(4) and the regulations thereunder. Petitioners concede
that they kept no records with respect to the business use of
petitioners’ two automobiles. Consequently, petitioners may
establish their entitlement to the depreciation deductions at
issue only by introducing into the record in this case their own
statements and sufficient evidence corroborating such statements.
See sec. 274(d)(4); sec. 1.274-5T(c)(1), Temporary Income Tax
Regs., 50 Fed. Reg. 46017 (Nov. 6, 1985). Petitioners introduced
no evidence at trial that supports their position with respect to
the depreciation deductions at issue. On the instant record, we
find that petitioners have failed to establish that they satisfy
the substantiation requirements of section 274(d)(4) and the
regulations thereunder regarding those deductions.
Based on our examination of the entire record before us, we
find that petitioners have failed to establish their entitlement
to the depreciation deductions at issue. Consequently, we
sustain respondent’s determination with respect to those claimed
deductions.
Respondent’s Determination Regarding the
Accuracy-Related Penalty Under Section 6662(a)
In the notice, respondent determined that petitioners are
Page: Previous 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 NextLast modified: May 25, 2011