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Section 274(d)(4) provides generally that no deduction or
credit shall be allowed with respect to any listed property
defined in section 280F(d)(4). Included as listed property under
section 280F(d)(4)(A)(i) and (ii) are passenger automobiles or
any other property used as a means of transportation.
At trial, petitioner testified that, as a means of
establishing his business, and because of the elite clientele of
some of his customers, he or his employees went to the residences
or places of business of customers who either had inoperable
vehicles or for personal reasons did not care to drive the
vehicles themselves, and petitioner or his employees drove or
towed the vehicles to petitioner’s place of business for repairs.
After the repairs, the cars were driven by petitioner or his
employees and returned to the customer. As explained by
petitioner, some of his customers were elite individuals in the
entertainment industry, and some customers simply refused to
drive their vehicle, even if the problem was minor, such as a
nonfunctioning headlight.
Petitioner maintained no records to document this service.
The expenses he incurred in providing this service comes within
the record keeping requirements of sections 274(d)(4) and
280F(d)(4)(A)(i) and (ii) referred to above. The records
necessary to substantiate the amounts claimed should include the
dates they were incurred, the times and places they were
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Last modified: May 25, 2011