- 27 -
the amount of each business use (using mileage or other approved
measures) as well as the total use of the listed property for the
taxable period; the date of the use; and the business or
investment purpose of the use. Sec. 1.274-5T(b)(6), Temporary
Income Tax Regs., 50 Fed. Reg. 46014 (Nov. 6, 1985).
Where section 274 applies, a taxpayer must substantiate the
expenditure by “adequate records” or by “sufficient evidence
corroborating the taxpayer’s own statement”. Sec. 274(d); sec.
1.274-5T(c)(1), Temporary Income Tax Regs. The “adequate
records” requirement is generally satisfied where a taxpayer
presents documentary evidence, such as receipts, paid bills, or
similar evidence sufficient to support deduction of an
expenditure. Sec. 1.274-5(c)(2)(iii), Income Tax Regs. For
deductions relating to uses of listed property, a taxpayer may
also satisfy the “adequate records” requirement by maintaining an
account book, diary, log, statement of expense, trip sheets, or
similar record, and documentary evidence which, in combination,
are sufficient to establish each required element of an
expenditure or use to which section 274(d) applies. Sec. 1.274-
5T(c)(2)(i), Temporary Income Tax Regs., 50 Fed. Reg. 46017 (Nov.
6, 1985).
If a taxpayer has not substantially complied with the
“adequate records” standard, he may substantiate an element of an
expenditure by presenting “sufficient evidence corroborating the
Page: Previous 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 NextLast modified: May 25, 2011