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(Nov. 6, 1985). In these instances, the Court is permitted to
make as close an approximation of the allowable expense as it
can, bearing heavily against the taxpayer whose inexactitude is
of his or her own making. Cohan v. Commissioner, supra.
B. Substantiation Requirements of Section 274
Section 274(d) applies to: (1) Any traveling expense,
including meals and lodging away from home; (2) entertainment,
amusement, and recreational expenses; or (3) the use of “listed
property”, as defined in section 280F(d), including personal
computers. To deduct such expenses, the taxpayer must
substantiate by adequate records or sufficient evidence to
corroborate the taxpayer’s own testimony: (1) The amount of the
expenditure or use; (2) the time and place of the travel,
entertainment, amusement, or recreation; (3) its business
purpose; and in the case of entertainment, (4) the business
relationship to the taxpayer of each expenditure or use. Sec.
274(d).
To satisfy the adequate records requirement of section 274,
a taxpayer must maintain records and documentary evidence that in
combination are sufficient to establish each element of an
expenditure or use. Sec. 1.274-5T(c)(2), Temporary Income Tax
Regs., 50 Fed. Reg. 46017 (Nov. 6, 1985). Although a
contemporaneous log is not required, corroborative evidence to
support a taxpayer’s reconstruction “of the elements * * * of the
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