Thomas N. Coccia - Page 10

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          The Court deems the issue raised and tried by consent of the                
          parties under Rule 41(b)(1) and properly before the Court.  See             
          Christensen v. Commissioner, T.C. Memo. 1996-254, affd. without             
          published opinion 142 F.3d 442 (9th Cir. 1998).                             
               Section 162(a) allows a taxpayer deductions for ordinary and           
          necessary business expenses paid during the taxable year in                 
          carrying on a trade or business.  Generally, a taxpayer must                
          establish that deductions claimed pursuant to section 162 are for           
          ordinary and necessary business expenses and must maintain                  
          records sufficient to substantiate the amounts of the deductions            
          claimed.  Sec. 6001; sec. 1.6001-1(a), Income Tax Regs.  Under              
          section 6001, a taxpayer bears the sole responsibility for                  
          maintaining his business records.                                           
               Petitioner says he purchased an existing newsstand but does            
          not have any records to show how much he paid for it.  He                   
          testified that the newsstand was burglarized twice before he was            
          able to commence operations.  Petitioner filed burglary reports             
          with the police and gave them estimates as to the value of the              
          items taken, including the strongbox containing all of his                  
               If a claimed business expense is deductible, but the                   
          taxpayer is unable to substantiate it, the Court is permitted to            
          make as close an approximation as it can, bearing heavily against           
          the taxpayer whose inexactitude is of his or her own making.                

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