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Commissioner, 39 F.2d 540 (2d Cir. 1930). Respondent argues that
the Court should make no estimate, because the Court lacks any
evidentiary basis from which an estimate could be made.
Petitioner contends that the rent charged by decedent
corresponded to a market rate because Coastal Ranches paid many
expenses associated with maintaining the properties, including
property taxes. However, petitioner overlooks the fact that the
fair market rental values, as calculated by petitioner’s expert
and used by respondent in the notice of deficiency, are net of
property taxes; respondent used the net figures in computing the
amount of taxable gifts. The record does not reflect amounts
paid for other property-related expenses.
We need not invoke the Cohan rule when the failure to
introduce documentary evidence stems from the taxpayer's own
intransigence. See Lerch v. Commissioner, 877 F.2d 624, 629 (7th
Cir. 1989), affg. T.C. Memo. 1987-295. Moreover, we agree with
respondent that the rule is inapplicable where, as here, the
record lacks any evidentiary basis from which an estimate could
be made. See Vanicek v. Commissioner, 85 T.C. 731, 742-743
(1985). Petitioner has failed to prove that the rent charged by
decedent corresponded to a market rate. Since there is no
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