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hoped to obtain a large cleaning contract that would enable her
to relocate to southern California. Petitioner gave no details
about her efforts to obtain such a contract, however, and
petitioner acknowledged that her sister lived in or near
Riverside at the time.
We conclude that petitioner has failed to establish that
more than 50 percent of the Astro Van’s use in 2001 was for trade
or business purposes. Accordingly, she is not entitled to make
the election under section 179. See sec. 1.179-1(d)(1), Income
Tax Regs. Because petitioner introduced no credible evidence
establishing that respondent’s allowance for depreciation expense
was incorrect for either 2001 or 2002, respondent’s determination
on this issue is sustained.4
B. Expenses Subject to Section 274(d)
Section 274(d) imposes strict substantiation requirements
for listed property, travel, entertainment, and meal expenses.
Sec. 1.274-5T(a), Temporary Income Tax Regs., 50 Fed. Reg. 46014
(Nov. 6, 1985). To obtain a deduction for such expenses, a
taxpayer must substantiate by adequate records or sufficient
evidence to corroborate the taxpayer’s own testimony the amount
4 The Code imposes additional restrictions on a taxpayer’s
ability to expense the cost of property under sec. 179. See,
e.g., secs. 179(b)(3)(A), 280F(d). Because petitioner failed to
establish that more than 50 percent of the Astro Van’s use in
2001 was for trade or business purposes, we do not address these
provisions.
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Last modified: November 10, 2007