- 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 thePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011