Stephen J. Cotta, Sr. - Page 5




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          provide some basis upon which an estimate may be made.  See                 
          Vanicek v. Commissioner, 85 T.C. 731, 743 (1985).                           
               Section 274(d) supersedes the Cohan doctrine.  See Sanford             
          v. Commissioner, 50 T.C. 823, 827 (1968), affd. 412 F.2d 201 (2d            
          Cir. 1969).  As relevant here, section 274(d) provides that,                
          unless the taxpayer complies with certain strict substantiation             
          rules, no deduction is allowable for meals and entertainment                
          expenses or with respect to listed property.  Listed property               
          generally includes computers.  Sec. 280F(d)(4).  To meet the                
          strict substantiation requirements, the taxpayer must                       
          substantiate the amount, time, place, and business purpose of the           
          expenses.  See sec. 274(d); sec. 1.274-5T, Temporary Income Tax             
          Regs., 50 Fed. Reg. 46006 (Nov. 6, 1985).                                   
               We are not convinced that petitioner had a trade or business           
          within the meaning of section 162(a).  Petitioner’s testimony               
          concerning the alleged business activity can be summarized as               
          follows.  The business was started in May 1996 and lasted until             
          December 1996.  Beverly Castillo, a personal friend of                      
          petitioner’s, performed the housekeeping services, while                    
          petitioner did marketing and business development.  The business            
          started with six clients; Ms. Castillo already had been                     
          performing housekeeping services for four of these clients before           
          petitioner became involved in the business.  According to an                
          agreement, Ms. Castillo was to take all revenue from the first 10           






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