Perry H. Kay, Sr. - Page 10

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          a vehicle expense deduction of $4,182.  At trial, petitioner                
          presented no evidence to substantiate the business mileage                  
          reported or the vehicle expense claimed.  Petitioner testified              
          that he did not “keep” his business mileage.  Petitioner’s                  
          witness, Alonza O. C. Sargent, testified that petitioner did                
          maintain a mileage log, but no such log was introduced at trial.            
               As stated above, section 274 requires strict substantiation            
          for deductions claimed for transportation in a passenger car.               
          Petitioner is required to provide a mileage log or other                    
          corroborative evidence sufficient to establish the amount, time,            
          place, and business purpose of the expense.  Sec. 274(d).  At               
          trial, petitioner failed to provide any corroborating evidence              
          whatsoever to satisfy the section 274 substantiation                        
               Based on a partial mileage log reviewed by respondent during           
          an examination prior to trial, respondent conceded that                     
          petitioner was entitled to 5,742 business miles.4  Applying the             
          standard mileage rate for 1998, respondent concedes that                    
          petitioner is entitled to a vehicle expense deduction of $1,866             
          for the year at issue.  Although petitioner did not substantiate            
          entitlement to a deduction in any amount at trial, we shall not             
          disturb the respondent’s concession.  Accordingly, petitioner is            

               4    The partial mileage log was not introduced at trial.              

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