Eugene C. Joseph, Sr. - Page 5

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            1930).  However, the estimate must have some reasonable                                   
            evidentiary basis.  Vanicek v. Commissioner, 85 T.C. 731, 743                             
            (1985).  The estimate must show that at least the estimated                               
            amount was actually spent or incurred for the stated purpose.                             
            Williams v. United States, 245 F.2d 559 (5th Cir. 1957).                                  
            However, in making an estimate, the Court may bear heavily on the                         
            taxpayer whose inexactitude is of his own making.  Cohan v.                               
            Commissioner, supra.                                                                      
                  Section 162(a) provides in relevant part that "There shall                          
            be allowed as a deduction all the ordinary and necessary expenses                         
            paid or incurred during the taxable year in carrying on any trade                         
            or business".  The regulations promulgated thereunder state that                          
            only those ordinary and necessary business expenses "directly                             
            connected with or pertaining to the taxpayer's trade or business"                         
            may be deducted.  Sec. 1.162-1(a), Income Tax Regs.                                       
                  Whether an expense is "ordinary and necessary" is generally                         
            a question of fact.  Commissioner v. Heininger, 320 U.S. 467, 475                         
            (1943).  To be "necessary" within the meaning of section 162, an                          
            expense need only be appropriate and helpful to the taxpayer's                            
            business.  Welch v. Helvering, supra at 113.  To be an "ordinary"                         
            expense, "the transaction which gives rise to it must be of                               
            common or frequent occurrence in the type of business involved".                          
            Deputy v. du Pont, supra at 495 (citing Welch v. Helvering, supra                         
            at 114).                                                                                  

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