- 12 - principal place of business for his trade or business.3 See sec. 280A(c)(1)(A). 5. Vehicle Expenses as Employee Business Expenses Pursuant to section 274(d), the Court cannot estimate a taxpayer’s expenses with respect to certain items. See Sanford v. Commissioner, 50 T.C. 823, 827 (1968), affd. per curiam 412 F.2d 201 (2d Cir. 1969). Section 274(d) provides that no deduction is allowable with respect to “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. Sec. 280F(d)(4)(A)(i) and (ii). In order to substantiate the amount of an automobile expense, the taxpayer must prove the following: (1) The amount of the expenditure (i.e., cost of maintenance, repairs, or other expenditures); (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). 3 Even if the Court were to find that Mr. Sizelove’s tenure as the club’s president constituted a trade or business, the deduction would be limited by sec. 280A(c)(5) to $0. See Cousino v. Commissioner, T.C. Memo. 1981-19, affd. 679 F.2d 604 (6th Cir. 1982).Page: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 NextLast modified: March 27, 2008