- 7 -
v. Commissioner, 50 T.C. 823, 827 (1968), affd. per curiam 412
F.2d 201 (2d Cir. 1969). In pertinent part, section 274(d)
provides that no deduction is allowable for “listed property”
unless the taxpayer complies with certain strict substantiation
requirements. The term “listed property” is defined to include
passenger automobiles and other property used as a means of
transportation. See sec. 280F(d)(4)(A)(i) and (ii).
To substantiate the amount of an automobile expense, the
taxpayer must prove the following: (1) The amount of the
expenditure (i.e., cost of acquisition); (2) the amount of each
business use and the amount of its total use by establishing the
amount of its business mileage and total mileage; (3) time (i.e.,
the date of the expenditure or use); and (4) the business purpose
for the expenditure or use. See sec. 1.274-5T(b)(6)(i) through
(iii), Temporary Income Tax Regs., 50 Fed. Reg. 46016 (Nov. 6,
1985). If the amount is not substantiated by adequate records or
sufficient corroborative evidence, then it is disallowed. See
sec. 274(d).
As to the “Rules of substantiation”, the temporary
regulation provides that taxpayers must substantiate each element
of an expenditure or use by adequate records or other sufficient
evidence that corroborates his statements. Sec. 1.274-5T(c),
Temporary Income Tax Regs., supra. Taxpayers must maintain and
produce such substantiation as will constitute proof of each
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: March 27, 2008