Part I. Rulings and Decisions Under the Internal Revenue Code of 1986

Section 62.—Adjusted Gross Income Defined

26 CFR 1.62–2: Reimbursements and other expense allowance arrangements.

Rules under which a reimbursement or other expense allowance arrangement for the cost of operating an automobile for business purposes will satisfy the requirements of section 62(c) of the Code as to business connection, substantiation, and returning amounts in excess of expenses are provided. See Rev. Proc. 2001–54, page 530.

Section 162.—Trade or Business Expenses

26 CFR 1.162–17: Reporting and substantiation of certain business expenses of employees.

Rules are set forth for substantiating the amount of a deduction for an expense for business use of an automobile that most nearly represents current costs. See Rev. Proc. 2001–54, page 530.

Section 170.—Charitable, etc., Contributions and Gifts

26 CFR 1.170A–1: Charitable, etc., contributions and gifts; allowance of deduction.

Rules are set forth for substantiating the amount of a deduction for an expense for charitable use of an automobile. See Rev. Proc. 2001–54, page 530.

Section 213.—Medical, Dental, etc., Expenses

26 CFR 1.213–1: Medical, dental, etc., expenses.

Rules are set forth for substantiating the amount of a deduction for an expense for use of an automobile to obtain medical services. See Rev. Proc. 2001–54, page 530.

Section 217.—Moving Expenses

26 CFR 1.217–2: Moving expenses.

Rules are set forth for substantiating the amount of a deduction for an expense for use of an automobile as part of a move. See Rev. Proc. 2001–54, page 530.

Section 274.—Disallowance of Certain Entertainment, etc., Expenses

26 CFR 1.274–5: Substantiation requirements.

Rules are set forth for an optional method for substantiating the amount of ordinary and necessary business expenses of an employee for automobile expenses when a payor provides a mileage allowance for such expenses. Rules are also set forth for an optional method for employees and selfemployed individuals to use in substantiating a trade or business deduction for automobile expenses. See Rev. Proc. 2001–54, page 530.

Section 1016.—Adjustments to Basis

26 CFR 1.1016–3: Exhaustion, wear and tear, obso- lescence, amortization, and depletion for periods since February 28, 1913.

Rules are set forth for substantiation of expenses relating to the business use of an automobile using a standard mileage rate, one component of which is depreciation, which will reduce the basis of the automobile (but not below zero) in determining adjusted basis as required by § 1016. See Rev. Proc. 2001–54, page 530.

2001–48 I.R.B 529 November 26, 2001