Marian Wilson - Page 8

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               Section 162(a) allows a taxpayer to deduct all ordinary and            
          necessary business expenses paid or incurred during the taxable             
          year in carrying on any trade or business.  No deduction is                 
          allowed for personal, living, or family expenses.  See sec. 262.            
               A taxpayer must substantiate any deductions claimed and bear           
          the burden of substantiation.  See Hradesky v. Commissioner, 65             
          T.C. 87, 89-90 (1975), affd. per curiam 540 F.2d 821 (5th Cir.              
          1976).  Taxpayers are required to maintain adequate records                 
          sufficient to enable the Commissioner to determine the taxpayer's           
          correct tax liability.  See Meneguzzo v. Commissioner, 43 T.C.              
          824, 831-832 (1965).  Generally, if a claimed business expense is           
          deductible, but the taxpayer is unable to substantiate it, the              
          Court is permitted to make as close an approximation as it can.             
          See Cohan v. Commissioner, 39 F.2d 540 (2d Cir. 1930).  That                
          estimate, however, must have a reasonable evidentiary basis.  See           
          Vanicek v. Commissioner, 85 T.C. 731, 743 (1985).                           
               In addition to the requirements of section 162, section                
          274(d) requires strict substantiation of certain expenses                   
          including those incurred with respect to any listed property as             
          defined in section 280F(d)(4), which includes any passenger                 
          automobile.  A taxpayer is required to substantiate expenses for            
          listed property by establishing the amount, time, place, and                
          business purpose of the expense.  See sec. 274(d).  This section            
          supersedes the doctrine in Cohan v. Commissioner, supra.  See               

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