Edgar and Doris Brown - Page 6

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               We first examine the disallowed Schedule C deductions in               
          issue.  On their 1991 return, petitioners claimed Schedule C                
          expenses related to Mr. Brown's tree stumping business in the               
          amount of $194,059.  After concessions,3 respondent disallowed              
          $84,021 of those business expenses on the grounds that                      
          petitioners failed to substantiate that the amounts were paid and           
          were for business purposes.  At trial, petitioners testified that           
          they incurred certain expenses, as discussed infra.  We are                 
          satisfied by the testimony of petitioners that, in carrying out             
          his tree stumping business, Mr. Brown incurred expenses beyond              
          those allowed by respondent in the notice of deficiency.  Because           
          petitioners have not established the precise amount of the                  
          deductions, however, we shall make a reasonable approximation of            
          the amounts allowable, "bearing heavily" upon petitioners as                
          permitted by Cohan v. Commissioner, supra at 543.                           
               Petitioners claimed interest expenses in the amount of                 
          $9,390, which respondent allowed to the extent of $1,392.                   
          Accordingly, the amount remaining in issue is $7,998.  At trial,            
          petitioners provided neither documentary evidence nor testimony             
          to substantiate the additional $7,998 in interest expenses that             
          they claimed.  Moreover, they failed to offer any reconstruction            
          of the amounts through third party records.  Consequently, as               
          there is no rational basis to approximate those expenses, we                


          3    See supra note 1.                                                      




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