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during the year in issue,2 petitioners may not deduct any
expenses for the business use of their home during that year.
Id.
We next address the Schedule C deductions claimed by
petitioners. A taxpayer 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).
Section 274(d) supersedes the Cohan doctrine. Sanford v.
Commissioner, 50 T.C. 823, 827 (1968), affd. 412 F.2d 201 (2d
Cir. 1969). Section 274(d) provides that, unless the taxpayer
2Petitioners argue that petitioner’s ability to use the
computer resources at the university without charge was “income”.
Even if this were so, however, petitioners’ taxable income would
not be affected in their favor. Any such income would be
includable in petitioners’ gross income under sec. 61(a), and
would only be offset by a sec. 280A(c) deduction to the extent of
that income.
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