- 8 -
doctrine in Cohan v. Commissioner, supra. See sec. 1.274-
5T(c)(2), Temporary Income Tax Regs., 50 Fed. Reg. 46017 (Nov. 6,
1985). Section 274(d) provides that no deduction shall be
allowed with respect to: (a) Any traveling expense, including
meals and lodging while away from home; (b) any item related to
an activity of a type considered to be entertainment, amusement,
or recreation; or (c) the use of any “listed property”, as
defined in section 280F(d)(4), unless the taxpayer substantiates
certain elements. Listed property includes any passenger
automobile and any computer or peripheral equipment. Sec.
280F(d)(4)(A)(i), (iv).
Section 274(d) provides that no deduction shall be allowed
with respect to any “listed property”, as defined in section
280F(d)(4), unless the taxpayer substantiates by adequate records
or sufficient evidence to corroborate the taxpayer’s own
testimony: (1) The amount of the expenditure or use based on the
appropriate measure (mileage may be used in the case of
automobiles), (2) the time and place of the expenditure or use,
(3) the business purpose of the expenditure or use, and (4) the
business relationship to the taxpayer of each expenditure or use.
To meet the adequate records requirements of section 274, a
taxpayer must maintain some form of records and documentary
evidence that in combination are sufficient to establish each
element of an expenditure or use. Sec. 1.274-5T(c)(2), Temporary
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011