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Under section 4.03 of the revenue procedures, petitioners
substantiated meals and incidental expenses of $990 ($30 x 33
days) for 2001, $480 ($30 x 16 days) for 2002, and $360 ($30 x 12
days) for 2003. Those expenses are subject to the section
274(n)(1) 50-percent limitation. Therefore, we hold that
petitioners may deduct meal and incidental expenses of $445 in
2001, $240 in 2002, and $180 in 2003.
Petitioner’s ineligibility to claim greater amounts for
meals and lodging is a result of his failure to maintain proper
records of his expenses, including logs showing the dates,
places, and business activity conducted while he was away from
home.
4. Automobile/Truck Expenses
Automobile expenses if paid or incurred for business reasons
or related to income-producing property are not personal and may
be deductible under section 162(a) or section 212, even if not
paid or incurred for travel away from home. In lieu of
substantiating the actual amount of the ordinary and necessary
expenses of using a vehicle for “local transportation [excluding
commuting expenses] and transportation to, from and at the
destination while traveling away from home”, a taxpayer may use a
standard mileage rate established by the Internal Revenue Service
(standard mileage rate). Sec. 1.274-5(j)(2), Income Tax Regs. A
deduction using the standard mileage rate is computed on a yearly
basis and is in lieu of all operating and fixed costs of the
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