- 40 -
portion of a taxable year. Sec. 1.274-5T(c)(3)(ii)(B), Temporary
Income Tax Regs., 50 Fed. Reg. 46021 (Nov. 6, 1985).
Having set forth the pertinent law, we turn to whether,
without regard to the requirements of section 274(d) and the
regulations thereunder, petitioners have shown that any payment
by them for Mr. Whitehead’s use of certain Burien Nissan automo-
biles during the years at issue would be allowable as a deduction
under section 162 or section 167. Petitioners make no arguments
or contentions with respect to that question. On the record
before us, we find that petitioners have failed to show that,
without regard to the requirements of section 274(d) and the
regulations thereunder, any such payment would be allowable as a
deduction under either of those sections.
Assuming arguendo that petitioners had shown that, without
regard to section 274(d) and the regulations thereunder, any
payment by them for Mr. Whitehead’s use of certain Burien Nissan
automobiles during the years at issue would be allowable as a
deduction under section 162 or section 167, see sec. 132(d),
petitioners must nonetheless establish that they have satisfied
the substantiation requirements of section 274(d) and the regula-
tions thereunder. Petitioners have attempted to meet those
substantiation requirements through the sampling method of
substantiation. On the record before us, we find that petition-
ers have failed to show that they are entitled to use the sam-
Page: Previous 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 NextLast modified: May 25, 2011