- 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