- 12 - place of each separate expenditure, and the business purpose for an expenditure or use. Sec. 274(d); sec. 1.274-5T(b), Temporary Income Tax Regs., 50 Fed. Reg. 46014 (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. The log must be made at or near the time of the expenditure. Sec. 1.274-5T(c)(2)(i) and (ii), Temporary Income Tax Regs., 50 Fed. Reg. 46017 (Nov. 6, 1985). Petitioner is entitled to deduct $350 for interest on purchases of business items and $1,874 for expenses relating to his computer. The computer was used to send “CD” labels to conductors and booking agents. Petitioner paid $1,000 for tax return preparation and he is entitled to deduct that amount. Section 280A limits the allowance of deductions related to the use of a home office. There is an exception if a portion of the house is used exclusively on a regular basis as the principal place of business for the taxpayer’s trade or business. Sec. 280A(c)(1)(A). Section 280A(c) requires that the taxpayer “use the portion of the home solely for the purpose of carrying on a trade or business and that there be no personal use of that part of the home.” Sengpiehl v. Commissioner, T.C. Memo. 1998-23. Petitioner claimed a $8,542 deduction for home officePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Next
Last modified: May 25, 2011