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curiam 412 F.2d 201 (2d Cir. 1969); sec. 1.274-5T(a), Temporary
Income Tax Regs., 50 Fed. Reg. 46014 (Nov. 6, 1985).
To substantiate a deduction pursuant to section 274(d), a
taxpayer must maintain adequate records or present corroborative
evidence to show the following: (1) The amount of the expense;
(2) the time and place of use of the listed property; and (3) the
business purpose of the use. Sec. 274(d); sec. 1.274-5T(b)(6),
Temporary Income Tax Regs., 50 Fed. Reg. 46016 (Nov. 6, 1985).
When a taxpayer’s records have been destroyed or lost due to
circumstances beyond his control, he is generally allowed to
substantiate his deductions through secondary evidence.
Malinowski v. Commissioner, 71 T.C. 1120, 1125 (1979); sec.
1.274-5T(c)(5), Temporary Income Tax Regs., 50 Fed. Reg. 46022
(Nov. 6, 1985). A taxpayer in this type of situation may
reconstruct his expenses through other credible evidence. Watson
v. Commissioner, T.C. Memo. 1988-29; sec. 1.274-5T(c)(5),
Temporary Income Tax Regs., supra. If no other documentation is
available, we may, although we are not required to do so, accept
credible testimony of a taxpayer to substantiate a deduction.
Watson v. Commissioner, supra. Having observed the witnesses’
appearance and demeanor at trial, we find them to be honest,
forthright, and credible.
The drivers who testified at trial provided reasonable
estimates of their monthly travel expenses. Beverly James
estimated monthly expenses as follows: $52.50 for motels, $12
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