- 13 - downstairs. Prepare to paint. 9 hours”; (3) “Go rent rug shampooer. Shampoo carpet sewing room. 9 hours”; (4) “Clean up and vacuum. 4 hours”; and (5) “Go to San Francisco with mom to help get wedding fabric. 8 hours.” Each document indicates that Steven worked 378 hours. It is not clear when petitioners prepared these documents or whether they accurately reflect Steven’s hours, duties, and earnings. Even if we accept the accuracy of the documents, many of the tasks that Steven performed are in the nature of routine family chores such as cleaning, vacuuming, taking out garbage, and accompanying Mrs. Alexander on shopping trips. Such chores are “part of parental training and discipline rather than the services rendered by an employee for an employer.” Denman v. Commissioner, supra at 450. Finally, we note that even if Steven performed tasks that were not routine family chores, the schedule does not separately identify the number of hours he spent on such tasks. Where a taxpayer establishes that he incurred a business expense but cannot prove the amount of the expense, the Court may approximate the amount allowable, bearing heavily against the taxpayer whose inexactitude is of his own making. Cohan v. Commissioner, 39 F.2d 540, 544 (2d Cir. 1930), affg. in part and remanding 11 B.T.A. 743 (1928); King v. Commissioner, T.C. Memo. 2006-112. To apply the Cohan rule, however, the Court must have a reasonablePage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011