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 ex-

pense allowance arrangements.

Rules are provided under which a reimburse ment or other expense allowance arrangement for the

cost of operating an automobile for business pur poses will satisfy the requirements of section 62(c) of

the Code as to business connection, substantiation, and

returning of amounts in excess of expenses. See Rev.

Proc. 2002–61, page 616.

Section 162.—Trade or Business Expenses

26 CFR 1.162–17: Reporting and substantiation of

certain business expenses of employees.

Rules are provided for substantiating the amount

of a deduction or an expense for business use of an

automobile that most nearly represents current costs.

See Rev. Proc. 2002–61, page 616.

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

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

Rules are provided for substantiating the amount of a deduction or an expense for charitable use of an automobile. See Rev. Proc. 2002–61, page 616.

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

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

Rules are provided for substantiating the amount

of a deduction or an expense for use of an automo bile to obtain medical services. See Rev. Proc. 2002–

61, page 616.

Section 217.—Moving Expenses

26 CFR 1.217–2: Moving expenses.

Rules are provided for substantiating the amount

of a deduction or an expense for use of an automo bile as part of a move. See Rev. Proc. 2002–61, page

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

26 CFR 1.274–5: Substantiation requirements.

Rules are provided for substantiating the amount

of ordinary and necessary business expenses of an em ployee for automobile expenses when a payor pro vides a mileage allowance for such expenses. Rules

are also provided for employees and self-employed in dividuals to use in substantiating a trade or business

deduction for automobile expenses. See Rev. Proc.

2002–61, page 616.

Section 1016.—Adjustments to Basis

26 CFR 1.1016–3: Exhaustion, wear and tear, ob-

solescence, amortization, and depletion for periods

since February 28, 1913.

Rules are provided for reduction of basis for busi ness use of an automobile under either the optional

standard mileage rate method or a mileage allow ance under a reimbursement or other expense allow ance arrangement. See Rev. Proc. 2002–61, page 616.

2002-39 I.R.B. 573 September 30, 2002