- 12 -
sufficient to support an expenditure shall be required
for--
(A) Any expenditure for lodging while
traveling away from home, and
(B) Any other expenditure of $25 or more,
except, for transportation charges, documentary
evidence will not be required if not readily
available.
Petitioner introduced no documentary evidence to
substantiate any of these claimed deductions. Although the
expense sheets submitted for 1994 include records of some meals
which cost petitioner less than $25, petitioner failed to
introduce any evidence reflecting the meals for which petitioner
claimed a deduction. Accordingly, we sustain respondent on such
deductions. Sec. 274(d); sec. 1.274-5T(a), Temporary Income Tax
Regs., 50 Fed. Reg. 46014 (Nov. 6 1985).
Remaining Deductions
Petitioner also claimed deductions for other business
related expenses in the amount of $8,871.65 for 1993 and
$7,600.36 for 1994. Respondent denied such deductions because
petitioner failed to substantiate them. By stipulation,
respondent conceded that petitioner was entitled to deduct
$1,200.37 in 1993 for Eagle office rent and sales tax paid and
$1,089 in 1994 for Eagle office rent.
Because the remaining expenses are for items not covered by
section 274, we are permitted to estimate them if we are
convinced from the record that the taxpayer has incurred such
expenses. Cohan v. Commissioner, 39 F.2d 540 (2d Cir. 1930).
Page: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 NextLast modified: May 25, 2011