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In this instance, any attempt on the part of this Court to
estimate petitioners' depreciation or section 179 deductions, or
petitioners' basis in any equipment they may have purchased,
would amount to little more than guesswork. Therefore, we hold
that petitioners are not entitled to such deductions because they
have failed to substantiate the underlying cost of the assets on
which the deductions are claimed.
c. Car and Truck Expenses
Though petitioners claimed car and truck expense deductions
in the amount of $10,884 on Schedule C of their 1994 Federal
income tax return, they did not list car and truck expenses on
their 1994 transaction report.
Petitioner testified that he shopped for restaurant supplies
and produce but did not present any substantiating evidence
regarding the business use of petitioners' vehicle. Much of
petitioner's shopping took place at stores within the same
shopping center as Villa Cabana, and we have no evidence as to
petitioners' vehicle use, mileage, or even the method petitioners
used in arriving at the $10,884 amount.
Indeed, the car and truck expense deduction amount claimed
by petitioners may be a mistaken entry, since petitioners claimed
depreciation and section 179 expense deductions in the amount of
$10,884 on Form 4562, but did not report that amount on Schedule
C, line 13.
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