David M. and Teri L. Saykally - Page 35

                                        - 35 -                                         
          are section 280F(d)(4) “listed property”.24  These items, as                 
          previously stated, require strict substantiation.  Here,                     
          petitioners failed to detail the expenses denied, the amounts of             
          those expenses, and the business purpose for those expenses.  We             
          are not required to, and shall not, guess.                                   
               Petitioners have failed to substantiate sufficiently the                
          expenses claimed in excess of the amount respondent allowed in               
          the notice of deficiency.  Furthermore, petitioner’s vague                   
          testimony that all the expenses claimed were for business                    
          purposes is not sufficient.  “It is well settled that we are not             
          required to accept petitioner’s self-serving testimony in the                
          absence of corroborating evidence.”  Jacoby v. Commissioner, T.C.            
          Memo. 1994-612 (citing Lerch v. Commissioner, 877 F.2d 624, 631-             
          632 (7th Cir. 1989), affg. T.C. Memo. 1987-295); see Geiger v.               
          Commissioner, 440 F.2d 688, 689 (9th Cir. 1971), affg. per curiam            
          T.C. Memo. 1969-159; Niedringhaus v. Commissioner, 99 T.C. 202,              
          212 (1992).  “There must be sufficient evidence in the record to             
          permit the Court to conclude that a deductible expense was                   
          incurred in at least the amount allowed.”  Jacoby v.                         
          Commissioner, supra (citing Williams v. United States, 245 F.2d              
          559, 560 (5th Cir. 1957)) (emphasis added).  To permit                       

               24Petitioner testified that part of the deductions claimed              
          and disallowed were for computer equipment and cellular                      
          telephone.  See sec. 280F(d)(4)(A)(v); Vaksman v. Commissioner,              
          T.C. Memo. 2001-165; Nitschke v. Commissioner, T.C. Memo. 2000-              
          230.                                                                         





Page:  Previous  21  22  23  24  25  26  27  28  29  30  31  32  33  34  35  36  37  38  39  40  Next

Last modified: May 25, 2011