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provide no basis to determine the nature of the expenditures.
The records fall far short of meeting the strict substantiation
requirements of section 274(d) which apply to deductions relating
to the use of passenger automobiles. Secs. 274(d)(4),
280F(d)(4)(A)(i); 1.274-5T(c)(1) and (2), Temporary Income Tax
Regs., 50 Fed. Reg. 46016, 46017 (Nov. 6, 1985). Petitioners
failed to address any of the other Schedule E expenses disallowed
by respondent. Consequently, we uphold respondent’s
determinations regarding petitioners’ Schedule E expenses in 1995
and 1996.
At trial Mr. Favero stated that petitioners would like to
file their 1997 Federal income tax returns jointly. Petitioners
filed separate 1997 returns. Mr. Favero was issued a notice of
deficiency for his 1997 tax year, and Mr. Favero filed a petition
with the Court challenging respondent’s determinations with
respect to his 1997 tax year. Section 6013(b)(2)(B) provides
that a joint return may not be filed after a separate return has
been filed and “after there has been mailed to either spouse,
with respect to such taxable year, a notice of deficiency under
section 6212, if the spouse, as to such notice, files a petition
with the Tax Court within the time prescribed in section 6213”.
Petitioners, therefore, may not file a joint return for their
1997 tax year.
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