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of a business is that petitioner filled out the Schedule C. The
Schedule C is replete with numerous, unsubstantiated, alleged
expenses. On this record, we agree with respondent that
petitioner was an employee and not self-employed. Accordingly,
we disallow the Schedule C loss deduction of $9,512.50.
Respondent treated petitioner as an employee and generously
allowed him a total deduction of $9,646 for employee business
expenses. (These were not detailed in the record. Respondent
had a list of expenses in the trial memorandum but failed to put
the list in evidence). Under the Cohan doctrine, we allow
petitioner an additional $362 of employee business expenses for a
total of $10,008, subject to the 2-percent adjusted gross income
limitation under section 67.
Respondent conceded that petitioner had medical expenses of
$1,064.46. After a review of the evidence, we find under the
Cohan rule, bearing heavily against the petitioner whose
inexactitude is of his own making, that petitioner is entitled to
a deduction of additional medical expenses in the amount of
$3,000. Thus, petitioner is entitled to deduct a total of
$4,064.46 of medical expenses, subject to the 7.5 percent
adjusted gross income floor under section 213(a).
Otherwise, after the Schedule C adjustment to be corrected
in the Rule 155 computation, we sustain respondent’s remaining
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