Astrida Terauds - Page 11

                                       - 11 -                                         

          petitioner presented no evidence regarding the proceedings she              
          undertook to evict the tenant from her rental property or                   
          receipts or canceled checks to show what amounts were paid to               
          effect the eviction.  With respect to the claimed depreciation,             
          petitioner presented no evidence to establish her ownership of              
          the house, the cost of the property and an allocation of that               
          cost between the land and the building, the useful life of the              
          property, and the amounts of depreciation claimed on the property           
          for prior years.                                                            
               When a taxpayer has insufficient records to substantiate               
          claimed deductions, this Court is permitted to estimate expenses            
          where the Court is convinced from the record that the taxpayer              
          has incurred such expenses.  Cohan v. Commissioner, 39 F.2d 540             
          (2d Cir. 1930).  However, to allow a deduction under the "Cohan             
          rule", there must be some evidence in the record to support the             
          Court's estimation of the amount that was actually spent or                 
          incurred for the purpose claimed.  Williams v. United States, 245           
          F.2d 559, 560 (5th Cir. 1957).  There is insufficient evidence in           
          this record upon which the Court can make an estimate of the                
          claimed expenses or depreciation.  Therefore, we reject                     
          petitioner's claim for additional expenses in excess of those               
          allowed by respondent with respect to her rental activity during            
          4.  Claimed Credits for Amounts Received by Respondent Pursuant             
          to Levies                                                                   

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011