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For each year at issue, petitioner deducted his travel
expenses, including transportation, meals, and lodging, on
Schedules F and E. He did not keep logs to substantiate dates he
was away from home on business or the business purpose of the
travel. He kept some, but not all, of his receipts for his
gasoline, meals, and lodging expenses. He did not use the
receipts to calculate his travel expenses. Instead, he used a
formula to compute the travel expenses deducted on Schedules E
and F each year.
Petitioner estimated that he traveled 15,000 miles each year
for his rental and farming activities.5 For each year,
petitioner calculated his transportation expense by multiplying
15,000 miles by the standard mileage rate for the year ($.345 for
2001; $.365 for 2002; and $.36 for 2003).
Petitioner estimated that he was away from home 40 days each
year for rental and farming business. He calculated his total
meals and lodging expenses of $3,600 by multiplying the 40 days
by $90, which he believed was the low-cost per diem lodging
expense rate for the years at issue listed in Rev. Proc. 2000-39,
2000-2 C.B. 340.
5In addition to the 2001 truck, petitioner has three other
vehicles that he uses (not exclusively) in his business
activities. He estimated that he used all four to travel a total
of 15,000 miles related to his business activity.
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