George H. Richards - Page 17




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          rate that is deemed to satisfy the substantiation requirements              
          and has done so for 1997.  Sec. 1.274(d)-1(a), Income Tax Regs.;            
          Rev. Proc. 96-63, 1996-2 C.B. 420.                                          
               Actual allowable expenses such as gasoline and tolls are               
          deductible if incurred in a trade or business and if they do not            
          constitute personal commuting expenses.  Sec. 162; Green v.                 
          Commissioner, 59 T.C. 456 (1972); sec. 1.162-1(a), Income Tax               
          Regs.                                                                       
               Petitioner’s Nissan Altima qualifies as “listed property”              
          under sections 274(d)(4) and 280F(d)(4)(A)(i).  Petitioner has              
          not provided any facts in support of depreciation of the                    
          automobile.  Therefore, the deduction for depreciation of the               
          automobile is denied.                                                       
               Petitioner produced a handwritten list approximating his               
          miles driven and tolls paid.  This list provides no assistance as           
          to whether petitioner has claimed as a deduction a standard                 
          mileage rate or actual expenses.  To the extent that this list              
          reflects mileage, it does not appear to be a contemporaneous log.           
          See Smith v. Commissioner, supra.  It also fails to establish               
          petitioner’s time, place, and business purpose of the miles                 
          driven.  Therefore, petitioner has not substantiated the                    
          deduction for a mileage allowance, and it is denied.                        
               To the extent that petitioner’s handwritten list reflects              
          actual expenses associated with the automobile, petitioner has              






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