Kenneth Andrew Baratelle - Page 5




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          deduction, we may estimate the amount allowable in some                     
          circumstances.  See Cohan v. Commissioner, 39 F.2d 540, 543-544             
          (2d Cir. 1930).  There must be sufficient evidence in the record,           
          however, to permit us to conclude that a deductible expense was             
          paid or incurred in at least the amount allowed.  See Williams v.           
          United States, 245 F.2d 559, 560 (5th Cir. 1957).  In estimating            
          the amount allowable, we bear heavily upon the taxpayer whose               
          inexactitude is of his or her own making.  See Cohan v.                     
          Commissioner, supra at 544.                                                 
               For certain kinds of business expenses, such as travel,                
          meal, and entertainment expenses, and those expenses attributable           
          to “listed property”, section 274(d) overrides the rule of Cohan            
          v. Commissioner.  See Sanford v. Commissioner, 50 T.C. 823, 827             
          (1968), affd. per curiam 412 F.2d 201 (2d Cir. 1969); sec. 1.274-           
          5T(a), Temporary Income Tax Regs., 50 Fed. Reg. 46014 (Nov. 6,              
          1985).  Listed property includes any passenger automobile and any           
          other property used as a means of transportation, under section             
          280F(d)(4)(A)(i) and (ii), unless excepted by section                       
          280F(d)(4)(C) or (d)(5)(B).                                                 
               Under section 274(d), a taxpayer must satisfy strict                   
          substantiation requirements before a deduction is allowable.  See           
          sec. 274(d); sec. 6001; sec. 1.6001-1(a), (e), Income Tax Regs.             
          If section 274(d) applies, we may not use the Cohan doctrine to             
          estimate those expenses covered by that section.                            






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