- 7 -
corroborate the taxpayer’s own testimony the amount of the
expense, the time and place of the use, the business purpose of
the use and, in the case of entertainment, the business
relationship to the taxpayer of each person entertained. Sec.
274(d); sec. 1.274-5T(b), Temporary Income Tax Regs., 50 Fed.
Reg. 46014 (Nov. 6, 1985). Section 274 requires that expenses
be recorded at or near the time when the expense is incurred.
Sec. 1.274-5T(c)(1), Temporary Income Tax Regs., 50 Fed. Reg.
46016 (Nov. 6, 1985). Listed property includes passenger
automobiles. Sec. 280F(d)(4)(A)(i). Petitioner therefore must
meet the strict requirements of section 274 to be entitled to a
deduction related to car expenses. If a taxpayer is unable to
fulfill the requirements of section 274(d), he is not entitled to
the deduction.
Petitioner’s records with respect to his car expenses fail
to satisfy the requirements of section 274(d). The weekly
activity sheets prepared by petitioner and provided to his
employer do not contain sufficient information to satisfy the
requirements of section 274(d). Petitioner’s day planners, which
may have contained additional detailed information, were not
available. Petitioner testified that he lost the planner for
2001 and disposed of the planner for 2002. Petitioner did not
provide a reconstruction of his mileage expenses in an attempt to
satisfy the substantiation requirements. Petitioner failed to
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011