Howard K. Hager - Page 11




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          satisfy the strict substantiation requirements of section 274(d).           
          See Whalley v. Commissioner, supra; see also sec. 280F(d)(1);               
          sec. 1.179-1(d)(3), Income Tax Regs.  In order to substantiate              
          the amount of an automobile expense the taxpayer must prove the             
          following:  (1) The amount of the expenditure (i.e., cost of                
          acquisition); (2) the amount of each business use and the amount            
          of its total use by establishing the amount of its business                 
          mileage and total mileage; (3) time (i.e., the date of the                  
          expenditure or use); and (4) the business purpose for the                   
          expenditure or use.  See sec. 1.274-5T(b)(6)(i) through (iii),              
          Temporary Income Tax Regs., 50 Fed. Reg. 46016 (Nov. 6, 1985).              
          The taxpayer may substantiate the amount of mileage by adequate             
          records or sufficient evidence that corroborates his statements.            
          See sec. 274(d).  A record of the mileage made at or near the               
          time of the automobile’s use that is supported by documentary               
          evidence has a high degree of credibility not present with a                
          subsequently prepared statement.  See sec. 1.274-5T(c)(1)-(3),              
          Temporary Income Tax Regs., supra.                                          
               Petitioner’s evidence consisted of the spreadsheet listing             
          the numbers he put on his return and his testimony that he                  
          purchased the Jeep from a bankruptcy trustee for $2,200 to use in           
          his business.  Additionally, petitioner testified that the Jeep             
          was his only vehicle and that his wife did not own a vehicle.               
          Petitioner failed to establish his business use.  Moreover, he              







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