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“Listed property” includes any passenger automobile,5 sec.
280F(d)(4)(A)(i), and any cellular telephone, sec.
280F(d)(4)(A)(v).
To meet the requirements of section 274(d), the taxpayer
must present adequate records or sufficient evidence to
corroborate his own testimony to establish: (1) The amount,
based on the appropriate measure, of the expenditure or use
(mileage may be used in the case of automobiles); (2) the time
and place of the expenditure or use; (3) the business purpose of
the expenditure or use; and (4) the business relationship to the
taxpayer of each expenditure or use, in the case of an
entertainment or gift expense.
To meet the adequate records requirements of section 274, a
taxpayer must maintain some form of records and documentary
evidence that in combination are sufficient to establish each
element of an expenditure or use. See sec. 1.274-5T(c)(2),
Temporary Income Tax Regs., 50 Fed. Reg. 46017 (Nov. 6, 1985). A
contemporaneous log is not required, but corroborative evidence
to support a taxpayer’s reconstruction of the elements of
expenditure or use must have “a high degree of probative value to
elevate such statement” to the level of credibility of a
5With exceptions not pertinent here, a passenger automobile
includes a truck rated at 6,000 pounds gross vehicle weight or
less. Sec. 280F(d)(5)(A).
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Last modified: March 27, 2008