Teresita T. Daiz - Page 12




                                       - 12 -                                         

               The long commutes in Aldea were for personal reasons and               
          nondeductible; in contrast, the long commutes in this case were             
          for employment reasons and therefore are deductible to the extent           
          they are substantiated.                                                     
               Section 274(d) imposes stringent substantiation requirements           
          for claimed deductions relating to traveling expenses and to the            
          use of “listed property”, which is defined under section                    
          280F(d)(4) to include “any passenger automobile”.  Under section            
          274(d), no deduction claimed with respect to the use of a                   
          passenger automobile shall be allowed unless the taxpayer                   
          substantiates specified elements of the use by adequate records             
          or by sufficient evidence corroborating the taxpayer’s own                  
          statement.  These substantiation requirements supersede the                 
          doctrine of Cohan v. Commissioner, 39 F.2d 540 (2d Cir. 1930),              
          under which we may approximate expenses in certain cases where              
          the exact amount cannot be determined.  Sec. 1.274-5T(a),                   
          Temporary Income Tax Regs., 50 Fed. Reg. 46014 (Nov. 6, 1985).              
               The elements that must be substantiated with respect to                
          deductible expenses for business use of an automobile are:  (1)             
          The amount of the expenditures; (2) the mileage for each business           
          use of the automobile and the total mileage for all use of the              
          automobile during the taxable period; (3) the date of the                   
          business use; and (4) the business purpose for the use of the               







Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  Next

Last modified: May 25, 2011