Carl Albert and Lorraine Rouse - Page 8

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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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