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If Deborah’s argument is that she is entitled to exclude a
portion of the annual lease value of the automobile from her
gross income, as we interpret it to be, her argument would appear
to be grounded in section 132. Section 132 provides that gross
income does not include any fringe benefit that qualifies as a
working condition fringe. Sec. 132(a)(3). A working condition
fringe is defined as “any property * * * provided to an employee
of the employer to the extent that, if the employee paid for such
property * * * such payment would be allowable as a deduction
under section 162 or 167.” Sec. 132(d). The value of property
or services furnished to an employee by an employer, however, may
not be excluded from an employee’s gross income as a working
condition fringe pursuant to section 132 unless the
substantiation requirements of either section 274(d) or section
162, whichever is applicable, and related regulations are
satisfied. Sec. 1.132-5(c)(1), Income Tax Regs.
Section 274(d) provides that no deduction is allowed with
respect to the use of “listed property”, as defined in section
280F(d)(4), unless certain elements are substantiated. See sec.
1.274-5T(e)(1)(i), Temporary Income Tax Regs., 50 Fed. Reg. 46026
(Nov. 6, 1985). A passenger automobile of the type furnished to
Deborah qualifies as listed property under section
280F(d)(4)(A)(i). Hence, Deborah must satisfy the substantiation
requirements of section 274(d) in order to argue successfully she
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