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In December of 1992, petitioner purchased a $22,476 Ford van
for which he claimed depreciation under MACRS of $4,800. At
trial, however, petitioner did not offer any evidence regarding
the percentage of business use for this vehicle.
Under Cohan, we generally may estimate a taxpayer's
deductions. Cohan v. Commissioner, 39 F.2d 540 (2d Cir. 1930).
However, section 274(d) overrides the Cohan rule with respect to
listed property and thus specifically precludes the Court from
allowing a deduction for automobile expenses on the basis of any
approximation or petitioner's unsupported testimony. Sec. 1.274-
5T(a)(4), Temporary Income Tax Regs., 50 Fed. Reg. 46014 (Nov. 6,
1985).
Accordingly, we sustain respondent's determination, since
petitioner failed to establish the percentage of business use for
the two vans, which is a threshold requirement that must be met
in order to deduct depreciation, insurance, and other automobile-
related expenses incurred in connection with these vehicles.
C. Legal and Professional Fees
For 1991 and 1992, petitioner deducted $123 and $43,
respectively, for annual credit card membership fees as a legal
and professional expense.8 Respondent disallowed the expenses in
full on the ground that petitioner failed to establish the
percentage of business use for any of the cards in issue.
8 We note that credit card membership fees should not have
been characterized as legal and professional fees. This
classification, however, does not foreclose the deductions.
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