Sonja and David Brown - Page 7




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          than money.  Moreover, the Court is satisfied from the record               
          that the amounts deducted as charitable contributions on                    
          petitioners' returns were arbitrarily determined by the return              
          preparer.  On this record, the Court sustains respondent on the             
          disallowed charitable contribution deductions for 1999 and 2000.            
               The claimed deductions for unreimbursed employee business              
          expenses related to the use of petitioner's personal vehicle in             
          connection with his employment.  Petitioner never sought                    
          reimbursement for such expenses from his employer.  He did not              
          maintain a log or other contemporaneous record documenting the              
          use of his vehicle.4  The amounts claimed as deductions on the              
          returns were also arbitrarily determined by the return preparer.            
          The deductions cannot be allowed for the reason that, under                 
          section 274(d) and the regulations thereunder, vehicle expenses             
          are subject to strict substantiation rules that require "adequate           
          records" through either an account book, diary, statement of                
          expense, or similar record, as well as documentary evidence to              
          establish each element of an expenditure.  Sec. 1.274-                      
          5T(c)(2)(i), Temporary Income Tax Regs., 50 Fed. Reg. 46017 (Nov.           
          6, 1985).  No records were presented at trial to substantiate               
          these expenses; consequently, respondent is sustained on the                


               4    The Court notes that the $14,217 of unreimbursed                  
          employee expenses represented 45.5 percent of petitioner's wages            
          for 1999.  The same category of expenses for 2000 represented               
          21.3 percent of his wages.                                                  





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