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property’s business and total usage, the date of the expenditure
or use, and the business purpose for an expenditure or use. Sec.
274(d); sec. 1.274-5T(b)(6), Temporary Income Tax Regs., 50 Fed.
Reg. 46016 (Nov. 6, 1985). To substantiate a deduction by means
of adequate records, a taxpayer must maintain an account book,
diary, log, statement of expense, trip sheets, and/or other
documentary evidence, which, in combination, are sufficient to
establish each element of expenditure or use. Sec. 1.274-
5T(c)(2)(i), Temporary Income Tax Regs., 50 Fed. Reg. 46017 (Nov.
6, 1985). Each element of an expenditure or use must be made at
or near the time of the expenditure or use. Sec. 1.274-
5T(c)(2)(ii)(A), Temporary Income Tax Regs., 50 Fed. Reg. 46017
(Nov. 6, 1985). Moreover, when section 274(d) applies, as here,
this Court cannot rely on Cohan v. Commissioner, 39 F.2d 540 (2d
Cir. 1930), to estimate the taxpayer’s expenses. Sanford v.
Commissioner, 50 T.C. 823, 827-828 (1968), affd. per curiam 412
F.2d 201 (2d Cir. 1969).
Petitioner had no books of account or other records
concerning his alleged businesses or any evidence of the
expenditures in issue. At trial, petitioner had no reconstructed
records to support his claimed deductions. Petitioner’s
miscellaneous documents from third parties and some items from
petitioner or his wife were not adequate to support any of his
deductions. Petitioner relied on his own testimony.
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