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business expenses. Where the Court is satisfied that the
taxpayer is entitled to some deduction but where the records are
inadequate to establish the amount of the deduction, the Court
may make an approximation of the amount of the deduction. Cohan
v. Commissioner, 39 F.2d 540 (2d Cir. 1930). In such cases we
are cautioned to bear heavily against the taxpayer “whose
inexactitude is of his own making.” Cohan v. Commissioner, supra
at 544. We find that $2,000 of the legal fees are deductible
under section 162.
To the extent that we have not addressed any of the parties'
arguments, we have considered them and conclude they are without
merit.
Reviewed and adopted as the report of the Small Tax Case
Division.
Decision will be entered
under Rule 155.
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Last modified: May 25, 2011