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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 office
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Last modified: May 25, 2011