- 4 -
some basis upon which an estimate can be made. Vanicek v.
Commissioner, 85 T.C. 731, 742-743 (1985).
Section 274(d) imposes stringent substantiation requirements
for the deduction of travel and automobile expenses. Taxpayers
must substantiate by adequate records certain items in order to
claim deductions, such as the amount and place of each separate
expenditure, the property’s business and total usage, the date of
the expenditure or use, and the business purpose for an
expenditure or use. Sec. 274(d); sec. 1.274-5T(b), Temporary
Income Tax Regs., 50 Fed. Reg. 46014 (Nov. 6, 1985). To
substantiate a deduction by means of adequate records, a taxpayer
must maintain an account, book, diary, log, statement of expense,
trip sheets, and/or other documentary evidence, which, in
combination, are sufficient to establish each element of
expenditure or use. Sec. 1.274-5T(c)(2)(i), Temporary Income Tax
Regs., 50 Fed. Reg. 46017 (Nov. 6, 1985). Travel and car and
truck expenses cannot be estimated under Cohan. Sanford v.
Commissioner, 50 T.C. 823, 827-828 (1968), affd. per curiam 412
F.2d 201 (2d Cir. 1969).
Respondent allowed petitioner $3,000 for automobile expenses
based on his comments to the auditing agent which were similar to
those he made in court. Petitioner did not have a log or any
other documentary evidence which meet the strict requirements of
section 274(d). Petitioner’s statement that he lost the log
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011