Kenneth G. Schladweiler - Page 5

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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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