- 16 -
5T(a), Temporary Income Tax Regs., 50 Fed. Reg. 46014 (Nov. 6,
1985). “Listed property” includes any passenger automobile.
Sec. 280F(d)(4)(A)(i). The taxpayer must substantiate the
expense as follows:
by adequate records or by sufficient evidence
corroborating the taxpayer’s own statement (A) the
amount of such expense or other item, (B) the time and
place of the travel, entertainment, amusement,
recreation, * * * (C) the business purpose of the
expense or other item, and * * * [Sec. 274(d).]
See sec. 1.274-5T(b)(6), Temporary Income Tax Regs., 50 Fed. Reg.
46016 (Nov. 6, 1985). The taxpayer must substantiate each
element of an expenditure by adequate records or sufficient
evidence corroborating his statements. Sec. 1.274-5T(c)(1),
Temporary Income Tax Regs., 50 Fed. Reg. 46016 (Nov. 6, 1985).
Written evidence has more probative value than oral evidence
alone. Id. The taxpayer must establish that the expenditure was
directly related to the active conduct of the taxpayer’s trade or
business. Sec. 1.274-2(a)(1)(i), Income Tax Regs.
A self-employed individual may deduct a mileage allowance
for ordinary and necessary expenses of local transportation and
travel away from home. Sec. 62(a)(1); sec. 1.62-2(e)(2), Income
Tax Regs.; sec. 1.62-2T(e)(2), Temporary Income Tax Regs., 63
Fed. Reg. 52600 (Oct. 1, 1998); sec. 1.274(d)-1(a)(1), Income Tax
Regs.; sec. 1.274(d)-1T, Temporary Income Tax Regs., 63 Fed. Reg.
52601 (Oct. 1, 1998). The Commissioner is authorized to
establish the standard mileage rate that is deemed to satisfy the
Page: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 NextLast modified: May 25, 2011