- 21 - 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.Page: Previous 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Next
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