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1998. However, petitioner presented an invoice at trial for the
purchase of the van dated March 6, 1997. Further, petitioner
testified that the van was driven for personal use “part of the
time.” Therefore, the only evidence presented on this point
indicates that the van was first placed in service in a personal
activity in 1997. The section 179 expense is allowed as a
deduction only in the year the property is placed in service.
See sec. 179(a); Hendrix v. Commissioner, T.C. Memo. 1990-221;
sec. 1.179-4(e), Income Tax Regs. Accordingly, petitioner is not
entitled to the section 179 expense deduction claimed on the van
in 1998.
ii. Business Standard Mileage Rate Expense
Since we found above that petitioner is not entitled to a
section 179 expense deduction, petitioner may use the standard
mileage rate to calculate the business-related vehicle expenses
on the van, if substantiated.
The business standard mileage rate in lieu of operating and
fixed costs allows the taxpayer to deduct an amount determined by
multiplying the business standard mileage rate for the year at
issue by the number of miles driven for business purposes. Rev.
Proc. 97-58, 1997-2 C.B. 587. The standard mileage rate for 1998
was 32.5 cents per mile. Id.
Petitioner reported 12,370 miles driven for business
purposes on Schedule C for the year at issue. Petitioner claimed
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