Gregory A. Maslow and Marina Maslow - Page 12

          basis that petitioner failed to provide substantiation for these            
          expenses.  A substantial portion of the claimed expenses was for            
          foreign country calls that pertained to the startup of petitioner's         
          export business.  However, a portion of the telephone expenses was          
          in connection with petitioner's insurance business.                         
               Under certain circumstances, if claimed deductions are not             
          adequately substantiated, we may estimate them, provided we are             
          convinced that the taxpayer has incurred such expenses and we have          
          a basis upon which to make an estimate.  Cohan v. Commissioner, 39          
          F.2d 540 (2d Cir. 1930); Vanicek v. Commissioner, 85  T.C. 731, 743         
          (1985). Based on the record presented, using our best estimate, and         
          giving consideration to section 262(b),4 we find, and thus hold,            
          that petitioners are entitled to a deduction for telephone expenses         
          in the amount of $1,500 for 1992. See, e.g., Velinsky v.                    
          Commissioner, T.C. Memo. 1996-180.                                          
               E. Commissions Expenses                                                

               4    SEC. 262.  PERSONAL, LIVING, AND FAMILY EXPENSES.                 
                         (a)  General Rule.--Except as otherwise                      
                    expressly provided in this chapter, no                            
                    deduction shall be allowed for personal,                          
                    living, or family expenses.                                       
                         (b)  Treatment of Certain Phone                              
                    Expenses.--For purposes of subsection (a), in                     
                    the case of an individual, any charge                             
                    (including taxes thereon) for basic local                         
                    telephone service with respect to the 1st                         
                    telephone line provided to any residence of                       
                    the taxpayer shall be treated as a personal                       

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  Next

Last modified: May 25, 2011