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business miles traveled. The use of the standard mileage rate
establishes only the amount deemed expended with respect to the
business use of a passenger automobile. Id. The taxpayer must
still establish the amount (i.e., business mileage), the time,
and the business purpose of each use. Id.
Petitioner claimed a car and truck deduction of $6,033 on
his 2000 Schedule C. Respondent allowed only $780 of the claimed
deduction. At trial, petitioner produced little additional
documentation. Petitioner was unable to identify which of his
two vehicles, the Volkswagen or the Honda, was “Vehicle 1" on his
Schedule C. Petitioner explained that he arrived at his total
mileage figure of 18,200 by estimation based on his fuel
expenditures for taxable year 2000, divided by the average miles
per gallon for his two vehicles.19 Petitioner has failed to meet
19Petitioner claims that he spent $1,661.47 on gasoline (87
octane) in 2000. Petitioner determined, from unspecified public
records, the average price of gasoline in California for 2000 to
be between $1.30 and $1.60 per gallon. Petitioner then
determined that the average miles per gallon, combining street
and highway, for his two cars was between 30 and 32 miles.
Petitioner took his total gas expense, divided it by the average
cost of gas per gallon, and then multiplied it by the average
miles per gallon of his two cars, which came to approximately
32,000 miles traveled. Petitioner then testified that he assigned
approximately 12,000 miles to personal use, and approximately
18,000 to business-related use.
Petitioner was required to use a standard mileage rate
established by the IRS in lieu of establishing the actual amount
of his expenditure. See sec. 1.274-5(j)(2), Income Tax Regs.
The business standard mileage rate for the 2000 taxable year was
32.5 cents per mile. Rev. Proc. 99-38, 1999-2 C.B. 525.
(continued...)
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