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making. Cohan v. Commissioner, 39 F.2d 540, 543-544 (2d Cir.
1930). The estimate, however, must have a reasonable evidentiary
basis. Vanicek v. Commissioner, 85 T.C. 731, 743 (1985). For
certain expenses, section 274 supersedes the Cohan doctrine. See
sec. 1.274-5T(a), Temporary Income Tax Regs., 50 Fed. Reg. 46014
(Nov. 6, 1985). It requires, for example, strict substantiation
of expenses with respect to any listed property as defined in
section 280F(d)(4). Sec. 274(d). Listed property includes any
passenger automobile or any other property used as a means of
transportation, and computers. Sec. 280F(d)(4)(A)(i), (ii), (iv).
Petitioners have offered no documentary or testimonial
evidence for any of the expenses claimed for the "bed and
breakfast" operation. In order for the Court to estimate the
amount of an expense, we must have some basis upon which an
estimate may be made. Vanicek v. Commissioner, supra. The Court
is without any such basis here, and any allowance would amount to
unguided largess. Williams v. United States, 245 F.2d 559, 560
(5th Cir. 1957).
Accordingly, the Court sustains respondent’s determination
that there are deficiencies in petitioners' income taxes for the
years 1997 and 1998.
Accuracy-Related Penalties
Respondent determined that petitioners are liable for the
section 6662(a) accuracy-related penalties for 1997 and 1998.
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