Lawrence K. Mudd - Page 11

                                       - 10 -                                         
               The third issue for decision is whether petitioner is                  
          entitled to a charitable contribution deduction in 1996.4  A                
          deduction generally is allowed for any charitable contribution              
          made within the taxable year.  Sec. 170(a)(1).                              
               A taxpayer generally must keep records sufficient to                   
          establish the amounts of the items required to be shown on his              
          Federal income tax return.  Sec. 6001; sec. 1.6001-1(a), (e),               
          Income Tax Regs.  In the event that a taxpayer establishes that a           
          deductible expense has been paid but is unable to substantiate              
          the precise amount, we 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.  Cohan v. Commissioner, 39 F.2d 540, 543-544 (2d            
          Cir. 1930).  We cannot estimate a deductible expense, however,              
          unless the taxpayer presents evidence sufficient to provide some            
          basis upon which an estimate may be made.  Vanicek v.                       
          Commissioner, 85 T.C. 731, 743 (1985).                                      
               Deductions for charitable contributions are subject to                 
          further substantiation requirements.  Sec. 170(a)(1).  Generally,           


          4While the notices of deficiency determine that petitioner                  
          is entitled to the standard deduction in each year, the parties             
          have stipulated that during the years in issue petitioner’s                 
          spouse filed a separate income tax return with itemized                     
          deductions, thereby causing the standard deduction to be zero for           
          petitioner in both years, see sec. 63(c)(6)(A), and allowing                
          petitioner to deduct any itemized deductions to which he may be             
          entitled.                                                                   




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

Last modified: May 25, 2011