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amount of his deductions. Sec. 6001; sec. 1.6001-1(a), Income
Tax Regs. If a taxpayer is unable to fully substantiate the
expenses incurred in his trade or business but there is evidence
that deductible expenses were incurred, the Court may
nevertheless allow a deduction based upon an approximation of
expenses. Ellis Banking Corp. v. Commissioner, 688 F.2d 1376
(11th Cir. 1982), affg. in part and remanding in part T.C. Memo.
1981-123; Cohan v. Commissioner, 39 F.2d 540, 544 (2d Cir. 1930);
Vanicek v. Commissioner, 85 T.C. 731, 742-743 (1985).
Respondent does not dispute and we conclude that petitioner
was in the trade or business of performing architectural CAD
drafting services in 1997. Respondent argues that petitioner
failed to substantiate the expenses for which he claimed
deductions on his Schedule C. We shall discuss each claimed
expense below.
A. Car and Truck Expenses
Petitioner claimed a deduction of $186 on his Schedule C for
car and truck expenses. It is not clear from his Schedule C or
the attached Form 4562, Depreciation and Amortization, whether
the claimed amount represents depreciation for his Nissan Altima
automobile, a standard mileage allowance, or actual expenses such
as gasoline and tolls.
To deduct expenses, such as depreciation, with respect to
“listed property” under section 280F(d)(4)(i), which includes an
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