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service. As part of the reconsideration of 2004, the TCO
computed an “allowable amount” for 2003 but made no change to the
original adjustment to the 2003 return denying any depreciation
deduction. Respondent has conceded that petitioners are entitled
to a depreciation deduction of $2,835 for 2003.
Two months before trial, Mrs. Runels sent to respondent’s
counsel electronic facsimiles of documents represented to be
worksheets recording where Mr. Runels had to be for his job and
the pallets he picked up and “mileage books we have been keeping
since 2005.” The documentation was ostensibly for November and
December of 2003, for January of 2004, and for 2007. About a
month before trial, petitioners sent to respondent’s counsel
copies of work logs for 2003 and 2004. At trial, Mr. Runels
testified that the belatedly submitted records of business
mileage were reconstructions rather than contemporaneous records.
He described them as “rough estimates of what we did.”
The Court finds that petitioners failed to provide
corroborative evidence to support their reconstruction of the
elements of use. See sec. 1.274-5T(c)(1), Temporary Income Tax
Regs., supra. Petitioners are entitled to deduct depreciation
for 2003, as conceded by respondent, but have otherwise failed to
show that they are entitled to deduct automobile expenses greater
than those allowed by respondent.
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Last modified: March 27, 2008