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being a professor during the years in issue, petitioners are not
entitled to deductions for claimed expenses on the basis of a
job-hunting or education purpose.
D. Substantiation of Expenses
In any event, petitioners argue that the expenses were
substantiated with adequate records. We disagree.
Under section 162, a taxpayer may deduct all ordinary and
necessary expenses paid or incurred during the taxable year in
carrying on any trade or business if the taxpayer maintains
sufficient records to substantiate the expenses. Secs. 162(a),
6001; sec. 1.6001-1(a), Income Tax Regs. The taxpayer bears the
burden of substantiation. Hradesky v. Commissioner, 65 T.C. 87,
90 (1975), affd. per curiam 540 F.2d 821 (5th Cir. 1976). As a
general rule, no deductions are allowed for personal, living, or
family expenses. Sec. 262(a).
If a taxpayer has established that deductible expenses were
incurred but has not established the amount of those expenses, we
may estimate the amount allowable (Cohan doctrine). Cohan v.
Commissioner, 39 F.2d 540, 543-544 (2d Cir. 1930). There must be
evidence in the record, however, that provides a rational basis
for our estimate. Vanicek v. Commissioner, 85 T.C. 731, 742-743
(1985).
In the case of travel expenses and expenses paid or incurred
with respect to listed property, e.g., passenger automobiles,
section 274 overrides the Cohan doctrine, and expenses are
deductible only if the taxpayer meets the section’s stringent
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