Barry D. and Suzanne B. Whalley - Page 21

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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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