James M. and Ruth J. Riley - Page 32

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          vehicle, including depreciation, maintenance and repairs, tires,            
          gasoline, oil, insurance, and license and registration fees.                
          Rev. Proc. 2002-61, sec. 5.03, 2002-2 C.B. at 616; Rev. Proc.               
          2001-54, sec. 5.03, 2001-2 C.B. at 530; Rev. Proc. 2000-48, sec.            
          5.03, 2000-2 C.B. at 570.  The standard mileage rate is to be               
          multiplied by the number of business miles traveled.  Rev. Proc.            
          2002-61, sec. 5.02, 2002-2 C.B. at 618; Rev. Proc. 2001-54, sec.            
          5.02, 2001-2 C.B. at 532; Rev. Proc. 2000-48, sec. 5.02, 2000-2             
          C.B. at 571.  The standard mileage rate is 34.5 cents per mile              
          for 2001, Rev. Proc. 2000-48, secs. 5.01, 11, 2000-2 C.B. at 571,           
          577; 36.5 cents per mile for 2002, Rev. Proc. 2001-54, secs.                
          5.01, 11, 2001-2 C.B. at 531, 537; and 36 cents per mile for                
          2003, Rev. Proc. 2002-61, secs. 5.01, 11, 2002-2 C.B. at 618,               
          623.  The use of the standard mileage rate establishes only the             
          amount deemed expended with respect to the business use of a                
          vehicle.  Sec. 1.274-5(j)(2), Income Tax Regs.  The taxpayer must           
          still establish the amount (i.e., the business mileage), the                
          time, and the business purpose of each such use.  Id.                       
               Petitioner testified that he used his truck and his other              
          vehicles for business purposes each year and estimated that he              
          drove 15,000 miles each year for his farming and rental                     
          activities.  He used the standard mileage rate and deducted                 
          $5,175 (34.5 cents per mile) for 2001, $5,475 (36.5 cents per               
          mile) for 2002, and $5,400 (36 cents per mile) for 2003.                    






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