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claimed. New Colonial Ice Co. v. Helvering, 292 U.S. 435, 440
(1934). Section 6001 requires taxpayers to maintain adequate
records from which their tax liability may be determined.
Petzoldt v. Commissioner, 92 T.C. 661, 686 (1989).
Respondent conceded that petitioner paid $378 to the State
Bank of Standish in 1992 on an installment loan. Petitioner's
testimony established that the interest was an ordinary and
necessary expense of carrying on her trade or business.
Consequently, the $378 is deductible. Sec. 162. Petitioner has
failed to establish that she is entitled to the remaining portion
of the claimed interest deduction. Although we believe that
petitioner borrowed money from the Michigan Federal Credit Union
for use in her trade or business, she has not proven the amount.
We cannot use the rule of Cohan v. Commissioner, 39 F.2d 540, 544
(2d Cir. 1930), to estimate the interest deduction because we
must have some basis in fact upon which an estimate may be made.
Vanicek v. Commissioner, 85 T.C. 731, 743 (1985). Without such
basis, any allowance would amount to unguided largesse.5
Williams v. United States, 245 F.2d 559, 560 (5th Cir. 1957).
Petitioner's Costs of Goods Sold
5 Respondent argues on brief that petitioner has not
substantiated other deductions on her tax returns for 1992 and
1993. The propriety of these deductions is not at issue as
respondent failed to raise these issues in her notice of
deficiency or in her pleadings. Generally, we will not consider
issues that are raised for the first time at trial or on brief.
Foil v. Commissioner, 92 T.C. 376, 418 (1989), affd. 920 F.2d
1196 (5th Cir. 1990).
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