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Petitioner claimed expenses of $9,252 for his SUV. Because
passenger automobiles are listed property under section
280F(d)(4)(A)(i), a deduction for automobile expenses requires
additional substantiation. Sec. 274(d). A taxpayer must
substantiate by adequate records or by sufficient evidence
corroborating the taxpayer’s own statement the amount of such
expense, the time and place of travel, and the business purpose
of the expense. Id.; see also sec. 1.274-5T(b)(6), Temporary
Income Tax Regs., 50 Fed. Reg. 46016 (Nov. 6, 1985).
Though petitioner provided substantiation of his monthly
lease and insurance payments due on the SUV, he did not
substantiate the business use of the SUV. Petitioner takes the
improbable position that all of his use of the vehicle was
business. He did not provide substantiation of times or dates of
business use or mileage on the SUV for business use. Because of
his failure to provide any records of use, petitioner may not
deduct the vehicle expenses in 2001.
10-Percent Additional Tax
Section 72(t) provides for a 10-percent additional tax on
early distributions from a qualified retirement plan for the
taxable year in which such amount is received. Petitioner does
not dispute that he received an early distribution from a
qualified retirement plan in 2001.
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