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5T(c)(2), Temporary Income Tax Regs., 50 Fed. Reg. 46017 (Nov. 6,
1985). Section 274(d) provides that no deduction shall be
allowed with respect to: (a) Any traveling expense, including
meals and lodging away from home; (b) any item related to an
activity of a type considered to be entertainment, amusement, or
recreation; or (c) the use of any “listed property”, as defined
in section 280F(d)(4), unless the taxpayer substantiates certain
elements. “Listed property” includes any passenger automobile.
Sec. 280F(d)(4)(A)(i).
When petitioner was questioned about the existence of
substantiation for his business expenses, specifically the
automobile expenses, he replied: “I have found it to be not
financially worthwhile to complete detailed logs of things." He
added that "I don't have any detailed records with me at this
time." In fact, petitioner did not have any records to
substantiate any of his claimed expenses except for his rental
expenses. The Court cannot estimate the amount of any of his
claimed expenses except for his rental expenses.
The rental payments, according to petitioner, are made up of
two elements. One is the expense of renting two storage spaces
10 feet by 30 feet in public "warehouses". The other element is
the rental of his home. Petitioner explained that his "home
situation has been temporary" due to the fact that his job
situation was unstable. He was looking for a full-time job, he
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