Thomas N. Coccia - Page 11

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          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).  Without such a           
          basis, such an allowance would amount to unguided largesse.                 
          Williams v. United States, 245 F.2d 559, 560 (5th Cir. 1957).               
               In light of the complete absence of any documents or                   
          reasonable evidence substantiating petitioner's claimed expenses,           
          the Court concludes that petitioner is not entitled to deduct any           
          Schedule C expenses for 2000.                                               
          D.   Self-Employment Tax                                                    
               Generally, a sole proprietor who derives income from a trade           
          or business is considered to have received self-employment                  
          income.  Secs. 1.1401-1(c), 1.1402(c)-1, Income Tax Regs.                   
          Self-employed individuals are also liable for self-employment tax           
          pursuant to section 1401 as part of their Federal income tax                
          liability.  Secs. 1.1401-1(a), 1.6017-1(a)(1), Income Tax Regs.             
               Subject to statutory exclusions, the amount of                         
          self-employment tax an individual owes is based on his "net                 
          earnings from self-employment".  Sec. 1402(a).  "Net earnings               
          from self-employment" include "the gross income derived by an               
          individual from any trade or business carried on by such                    
          individual, less the deductions allowed" which are attributable             
          to the trade or business.  Id.; sec. 1.1402(a)-1(a)(1), Income              
          Tax Regs.                                                                   

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