James M. and Ruth J. Riley - Page 23

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          to permit us to conclude that a deductible expense was paid or              
          incurred in at least the amount allowed.  Williams v. United                
          States, 245 F.2d 559, 560 (5th Cir. 1957).                                  
               For certain kinds of expenses otherwise deductible under               
          section 162(a) or 212, such as travel, meal, and entertainment              
          expenses, and those expenses attributable to “listed property”,             
          section 274(d) overrides the Cohan rule.  Sanford v.                        
          Commissioner, 50 T.C. 823, 827 (1968), affd. per curiam 412 F.2d            
          201 (2d Cir. 1969); sec. 1.274-5T(a), Temporary Income Tax Regs.,           
          50 Fed. Reg. 46014 (Nov. 6, 1985).  Listed property includes any            
          passenger automobile9 and any other property used as a means of             
          transportation, under section 280F(d)(4)(A)(i) and (ii), unless             
          excepted by section 280F(d)(4)(C) or (5)(B).10  Under section               
          274(d), a taxpayer must satisfy strict substantiation                       
          requirements before a deduction is allowable.  Secs. 274(d),                
          6001; sec. 1.6001-1(a), (e), Income Tax Regs.                               

               9The term “passenger automobile” does not include trucks and           
          vans excluded by regulation.  Sec. 280F(d)(5)(B)(iii).  Pursuant            
          to sec. 1.280F-6(c)(3)(iii), Income Tax Regs., a passenger                  
          automobile does not include a truck or van that is a qualified              
          non-personal-use vehicle defined under sec. 1.274-5T(k),                    
          Temporary Income Tax Regs., 50 Fed. Reg. 46033 (Nov. 6, 1985).              
          Petitioner’s truck is not excluded from the definition of                   
          passenger automobile.  See sec. 1.274-5T(k), Temporary Income Tax           
          Regs., supra.                                                               
               10Petitioner used his truck and three other vehicles for his           
          rental and farming activities.  On the record before us, we find            
          that petitioners’ vehicles, which are not subject to any of the             
          exceptions in sec. 280F(d)(4)(C) or (5)(B), are listed property             
          within the meaning of sec. 280F(d)(4).                                      

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