Estate of David J. Dickerson, Deceased, Dorothy Dickerson, Executor and Dorothy Dickerson, et al. - Page 16

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          deduct the loan origination fees5 as well as the mortgage                   
          interest, subject to substantiation.  Secs. 280A(d)(1) and (2),             
          267(c)(4).  Respondent further argues that the Dickersons have              
          not substantiated the claimed deductions and therefore are not              
          entitled to them.  Petitioners provided a U.S. Department of                
          Housing and Urban Development Settlement Statement (settlement              
          statement) which substantiates that petitioners paid $2,199 in              
          loan origination fees as well as some amount of interest.  If the           
          record provides sufficient evidence that the Dickersons paid the            
          mortgage interest, but they are unable to prove the exact amount,           
          we can estimate the amount of the payments.  Cohan v.                       
          Commissioner, 39 F.2d 540, 544 (2d Cir. 1930).  In order for the            
          Court to make such an estimate, 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 a basis, any allowance would            
          amount to unguided largesse.  Williams v. United States, 245 F.2d           
          559, 560 (5th Cir. 1957).  Mrs. Dickerson testified that the                
          Dickersons paid the mortgage on the Green Ridge residence.                  
          Although we cannot determine the exact amount of interest paid by           
          the Dickersons, we conclude that, based on Mrs. Dickerson's                 
          testimony and the settlement statement, it was at least as much             
          as claimed on their Schedule A, and therefore we hold that they             

               5  The loan origination fees are deductible ratably, over              
          the life of the loan.  Sec. 461(g)(1); cf. Huntsman v.                      
          Commissioner, 91 T.C. 917, 920 (1988), revd. 905 F.2d 1182 (8th             
          Cir. 1990).                                                                 

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