Final answer:
The assertion that listed property must adhere to § 274's substantiation requirements is true. Entities must maintain detailed records for expenses related to listed property to qualify for tax deductions.
Step-by-step explanation:
The statement that listed property is subject to the substantiation requirements of § 274 is True. Listed property refers to certain types of business or investment property, such as vehicles, computers, or photographic equipment, which are used both in a trade or business and personally. The IRS requires that the use of this property be documented carefully to ensure that it is appropriately being claimed for business purposes.
To qualify for a tax deduction, expenses related to listed property must meet the substantiation requirements set by Section 274 of the Internal Revenue Code. This means maintaining detailed records that prove the business use of the property. Documentation may include logs showing the date, miles driven (for vehicles), business purpose, and more.
You can find good examples of limited truths, like the ones that need to be substantiated in real-estate advertisements, where photographs of houses for sale might not reveal undesirable neighboring properties. Though the photographs are 'truthful', there is a limitation to the truth they convey, much like how thorough substantiation is needed for listed property to understand its actual business usage.