Jerry Howard-Crowley - Page 8

                                        - 7 -                                         
               There is no evidence in the record that petitioner complied            
          with the requirements of section 152, and the Court holds that              
          petitioner is not entitled to a dependency exemption deduction              
          for his daughter for 2000.                                                  
               Deduction for Medical Expenses                                         
               Petitioner argued at trial that he should be allowed medical           
          expense deductions for himself and amounts he spent for medical             
          insurance on his children.  He alleges that he incurred as a                
          medical expense for himself less than $100 for anger management             
          counseling from a person named Dolly Powell.  He testified that             
          he was unable to obtain any information from her and that her               
          telephone number is unpublished.                                            
               A taxpayer generally must keep records sufficient to                   
          establish the amounts of the items reported on his Federal income           
          tax return.  See sec. 6001; sec. 1.6001-1(a), (e), Income Tax               
          Regs.  However, in the event that a taxpayer establishes that a             
          deductible expense has been paid but is unable to substantiate              
          the precise amount, the Court generally may estimate the amount             
          of the deductible expense, bearing heavily against the taxpayer             
          whose inexactitude in substantiating the amount of the expense is           
          of his own making.  See Cohan v. Commissioner, 39 F.2d 540, 543-            
          544 (2d Cir. 1930).  The Court cannot estimate a deductible                 
          expense, however, unless the taxpayer presents evidence                     
          sufficient to provide some basis upon which an estimate may be              






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  Next

Last modified: May 25, 2011