Perry H. Kay, Sr. - Page 20

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          the damage to his residence, but could not remember the exact               
          amount.  While we are permitted to estimate the amount of a                 
          deduction under certain circumstances, there must be evidence in            
          the record upon which to base our decision.  Cohan v.                       
          Commissioner, 39 F.2d 540 (2d Cir. 1930).  Petitioner did not               
          corroborate his testimony with any evidence whatsoever to                   
          establish the $4,000 figure.  It is well settled that we are not            
          required to accept a taxpayer’s self-serving testimony in the               
          absence of corroborating evidence.  Niedringhaus v. Commissioner,           
          99 T.C. 202, 212 (1992).                                                    
               Petitioner presented receipts totaling only $2,588.01 for              
          labor and materials to replace the roof and received $857.12 in             
          insurance proceeds.  Therefore, only the $1,730.88 of net expense           
          corroborated by documentary evidence is considered in determining           
          petitioner’s casualty loss deduction.                                       
               We need not determine on the merits if petitioner has met              
          the four substantiation requirements of section 1.165-                      
          7(a)(2)(ii), Income Tax Regs., because petitioner’s net expense             
          is less than the amount of the section 165(h) limitations.                  
          Applying the section 165(h) limitations, petitioner’s net expense           
          of $1,730.88 minus the $100 limitation, or $1,630.88, is far less           

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