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He calculated the deduction for car and truck expenses by taking
the opening odometer reading on January 1 and the ending odometer
reading on December 31, calculating the annual mileage, and
applying the standard mileage rate to the annual mileage driven.
Contrary to the position taken on his tax returns, petitioner
testified that he drove the vehicles for business purposes only
and that part of the mileage may have been commuting miles.
Petitioner did not keep a mileage log or any other records that
would have enabled respondent to determine the total mileage
driven by petitioner during 1992 and 1993 and how much of that
mileage was for business use.
Ordinarily, a taxpayer is permitted to deduct the ordinary
and necessary expenses that he pays or incurs during the taxable
year in carrying on a trade or business. See sec. 162(a). A
taxpayer is required to maintain records sufficient to establish
the amount of his deductions. See sec. 6001; sec. 1.6001-1(a),
Income Tax Regs. When a taxpayer establishes that he paid or
incurred a deductible expense, but does not establish the amount
of the 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
incurred in at least the amount allowed. See Williams v. United
States, 245 F.2d 559, 560 (5th Cir. 1957). In estimating the
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