Elliot Virgil Wilkerson - Page 12

                                       - 11 -                                         
          be sufficient evidence in the record to permit us to conclude               
          that a deductible expense was paid or incurred in at least the              
          amount allowed, Williams v. United States, 245 F.2d 559, 560-561            
          (5th Cir. 1957).                                                            
               In the case of travel expenses and expenses relating to the            
          use of listed property, including any passenger automobile or               
          other property used as a means of transportation, sec.                      
          280F(d)(4)(A)(i) and (ii), section 274(d) imposes stringent                 
          substantiation requirements to document the nature and amount of            
          such expenses.  Sec. 274(d); Sanford v. Commissioner, 50 T.C.               
          823, 827 (1968), affd. per 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 meet these substantiation requirements, the             
          taxpayer must maintain adequate records or sufficient                       
          corroborating evidence to establish each element of an                      
          expenditure.  Sec. 274(d); sec. 1.274-5T(b)(6), Temporary Income            
          Tax Regs., 50 Fed. Reg. 46016 (Nov. 6, 1985); sec. 1.274-                   
          5T(c)(2)(i), Temporary Income Tax Regs., 50 Fed. Reg. 46017 (Nov.           
          6, 1985).                                                                   
                    2.  Schedule C Deductions                                         
               Section 162(a) allows a deduction for all ordinary and                 
          necessary expenses paid or incurred during the taxable year in              
          carrying on a trade or business.                                            








Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011