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automobiles and any other property used as a means of
transportation.4 Sec. 280F(d)(4)(A)(i) and (ii).
To obtain a deduction for such expenses, a taxpayer must
substantiate by adequate records or by sufficient evidence
corroborating the taxpayer’s own testimony the amount of the
expense, the time and place of the use, the business purpose of
the use, and, in the case of entertainment, the business
relationship to the taxpayer of each person entertained. Sec.
274(d); sec. 1.274-5T(b), Temporary Income Tax Regs., 50 Fed.
Reg. 46014 (Nov. 6, 1985). The Cohan rule does not apply to
expenses governed by section 274(d). Sanford v. Commissioner, 50
T.C. 823, 827-828 (1968), affd. per curiam 412 F.2d 201 (2d Cir.
1969).
Petitioner claimed a $5,338 deduction for car and truck
expenses in connection with the Trailblazer which respondent
disallowed in full.5 As discussed above, petitioner used the
Trailblazer for both personal and business purposes. When a
taxpayer uses an automobile for personal and business purposes,
only that percentage of the expenses which represents business
4 Although there are exceptions to this rule, see, e.g.,
Sullivan v. Commissioner, T.C. Memo. 2002-131 n.2, petitioner has
not argued or demonstrated that any such exception applies.
5 Although petitioner may also have used the Neon for
business purposes, she provided almost no testimony or other
evidence concerning this vehicle. We therefore confine our
discussion to the Trailblazer.
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Last modified: November 10, 2007