- 21 -
Because petitioner has shown that she is entitled to a pro
rata amortization deduction for her payment of points, but has
not shown the amount of such deduction, we are permitted to
estimate the amount under the rule of Cohan v. Commissioner,
supra. The Court in Cohan directed the Board of Tax Appeals to
estimate expenses "bearing heavily if it chooses upon the
taxpayer whose inexactitude is of his own making.” We therefore
conservatively estimate that the term of petitioner's mortgage
loan is 30 years, and allow her a deduction for the amortization
of her payment of points attributable to the rental portion of
the house, in the amount of $32.14 Respondent's adjustment to
petitioner's rent income is sustained to the extent of $6,134, an
amount equal to respondent's original adjustment of $6,166, less
the $32 deduction allowed for the amortization of the payment of
points.
C. Gain Recognized on Sale of Truck
Section 1001 provides that gain from the sale of property
equals the excess of the amount realized from the sale over the
adjusted basis in the property sold. Generally, the adjusted
basis of property equals its original cost, increased by
expenditures properly chargeable to capital account, and
14 The amount of the deduction is computed by dividing
$1,250 by 30, then multiplying such product by 276/365 because
petitioner purchased the home and acquired the related
indebtedness on Mar. 30, 1993.
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