7
Petitioner estimated his meals expense as an average weekly
amount of $100. Petitioner provided no substantiation for this
amount.
Respondent's determinations are presumed correct, and
petitioner bears the burden of proving them erroneous. Rule
142(a); Welch v. Helvering, 290 U.S. 111 (1933). Deductions are a
matter of legislative grace. New Colonial Ice Co. v. Helvering,
292 U.S. 435, 440 (1934). Taxpayers must maintain adequate
records to substantiate the amount of any deductions. Sec. 6001;
Sec. 1.6001-1(a), Income Tax Regs.
Section 162 allows a deduction for ordinary and necessary
expenses paid or incurred in carrying on a trade or business.
Generally, except as provided by section 274(d), when evidence
shows that taxpayers incurred a deductible expense, but the exact
amount cannot be determined, the Court may approximate the
amount. Cohan v. Commissioner, 39 F.2d 540 (2d Cir. 1930).
However, the Court must have some basis upon which an estimate
may be made. Vanicek v. Commissioner, 85 T.C. 731, 742-743
(1985).
Car and Truck Expense
Petitioner claimed a deduction for car and truck expense in
the amount of $2,240. Respondent disallowed $1,523 of this
deduction for lack of substantiation.
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