- 11 -
advertising in excess of the amounts already allowed or conceded
by respondent. As there is insufficient credible evidence to
establish a rational basis for making an estimate, we shall not
allow petitioner a deduction for this item greater than that
allowed or conceded by respondent. See Cohan v. Commissioner,
supra at 543-544; Vanicek v. Commissioner, supra at 742-743.
9. Section 274 Expenses (Automobile and Travel)
In addition to satisfying the criteria for deductibility
under section 162, certain categories of expenses must also
satisfy the strict substantiation requirements of section 274(d)
in order for a deduction to be allowed. The expenses to which
section 274(d) applies include, among other things, listed
property (e.g., automobile expenses and cellular telephones) and
travel expenses (including meals and lodging while away from
home). Secs. 274(d)(4), 280F(d)(4)(A)(i), (ii), (v). We may not
use the Cohan doctrine to estimate expenses covered by section
274(d). See Sanford v. Commissioner, 50 T.C. at 827; sec. 1.274-
5T(a), Temporary Income Tax Regs., 50 Fed. Reg. 46014 (Nov. 6,
1985).
To substantiate a deduction attributable to travel and
listed property, a taxpayer must maintain adequate records or
present corroborative evidence to show the following: (1) The
amount of the expense; (2) the time and place of use of the
listed property; and (3) the business purpose of the use. Sec.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011