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for expenses for gifts, or (4) with respect to listed property.
Listed property is defined under section 280F(d)(4) to include
passenger automobiles and any other property used as a means of
transportation. To meet the strict substantiation requirements,
the taxpayer must substantiate the amount, time, place, and
business purpose of the expenses. See sec. 274(d). With respect
to the use of automobiles, in order to establish the amount of an
expense the taxpayer must establish the amount of business
mileage and the amount of total mileage for which the automobile
was used. See sec. 1.274-5T(b)(6)(i)(B), Temporary Income Tax
Regs., 50 Fed. Reg. 46016 (Nov. 6, 1985). The taxpayer may
substantiate the amount of mileage by adequate records or by
sufficient evidence corroborating his own statement. See sec.
274(d). A record of the mileage made at or near the time the
automobile was used, supported by documentary evidence, has a
high degree of credibility not present with a subsequently
prepared statement. See sec. 1.274-5T(c)(1), (2), and (3),
Temporary Income Tax Regs., 50 Fed. Reg. 46016 (Nov. 6, 1985)
Each taxable year stands alone, and respondent may challenge
in a succeeding year what was condoned or agreed to in a former
year. See Boatner v. Commissioner, T.C. Memo. 1997-379, affd.
164 F.3d 629 (9th Cir. 1998) (citing Automobile Club v.
Commissioner, 353 U.S. 180 (1957)). Thus, taxpayers must meet
the requirements of section 274(d) and the regulations
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Last modified: May 25, 2011