-14-
that although such records existed at one time, they were lost
when he moved his office.
Based on our opportunity to observe Mr. Hughes at trial, we
are unable to accept his testimony uncritically. Nevertheless,
and despite what appears to us to be a convenient lack of
records, we are satisfied that petitioners incurred some
deductible expense for Mr. Hughes' services in 1993. Thus,
bearing heavily against petitioners, whose inexactitude is of
their own making, we hold that petitioners are entitled to deduct
$250 in "Legal Services" in 1993. Cohan v. Commissioner, supra
at 543-544. Accordingly, respondent's determination on this
issue is partially sustained.
4. Rent
Petitioner claimed a deduction for "Rent, business" in the
amount of $5,036. Petitioners contend that this amount
represents the sum of (1) rent paid to SeaTac Airport under the
Port lease, and (2) amounts paid to Red Lion for the use of its
shoeshine stand.
In the notice of deficiency, respondent allowed $1,330 of
the claimed deduction and disallowed the balance for lack of
substantiation. However, at trial, respondent conceded that
petitioners are entitled to deduct an additional $1,298. The sum
of these two amounts, $2,628, represents the following: (1) Rent
for 6 months in the monthly amount of $300 paid to the Port
(i.e., $1,800); (2) rent in the amount of $226 paid to the Port
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