Christopher D. and Kristie M. Farran - Page 20

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          property” for purposes of section 274(d)(4) and are thus subject            
          to the strict substantiation requirements.  Gaylord v.                      
          Commissioner, T.C. Memo. 2003-273.  A taxpayer must establish the           
          amount of business use and the amount of total use for the                  
          property.  Nitschke v. Commissioner, T.C. Memo. 2000-230; sec.              
          1.274-5T(b)(6)(i)(B), Temporary Income Tax Regs., 50 Fed. Reg.              
          46016 (Nov. 6, 1985).                                                       
               Although the parties stipulated that petitioners paid                  
          $324.42 for cellular phone service during 2003, petitioners did             
          not prove that NWA required Mr. Farran to have a cellular phone.            
          Moreover, Mr. Farran also admitted at trial that he used his                
          cellular phone in 2003 to make personal calls as well as for                
          business reasons.  Petitioners also did not offer any evidence              
          indicating how much Mr. Farran used his cellular phone in 2003              
          for business use and how much for personal use.  Petitioners                
          failed to establish that they incurred any expenses to use Mr.              
          Farran’s cellular phone for business purposes in addition to                
          those they would have incurred had Mr. Farran used it only for              
          personal purposes.  Petitioners are therefore not entitled to               
          deduct any cellular phone expenses for 2003.                                
               Education Mileage                                                      
               Petitioners claimed $461 of education mileage expenses for             
          2003.  Education expenses are generally deductible as ordinary              
          and necessary business expenses if either of two alternative                

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