Matthew P. Brown - Page 7

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          262(a).  A taxpayer is required to maintain records sufficient to           
          establish the amount of his income and deductions.  Sec. 6001;              
          sec. 1.6001-1(a), (e), Income Tax Regs.  A taxpayer must                    
          substantiate his deductions by maintaining sufficient books and             
          records to be entitled to a deduction under section 162(a).                 
               When a taxpayer establishes that he has incurred a                     
          deductible expense but is unable to substantiate the exact                  
          amount, we are permitted to estimate the deductible amount.                 
          Cohan v. Commissioner, 39 F.2d 540, 543-544 (2d Cir. 1930).  We             
          can estimate the amount of the deductible expense only when the             
          taxpayer provides evidence sufficient to establish a rational               
          basis upon which the estimate can be made.  Vanicek v.                      
          Commissioner, 85 T.C. 731, 743 (1985).                                      
               Section 274(d) supersedes the general rule of Cohan v.                 
          Commissioner, supra, and prohibits the Court from estimating the            
          taxpayer’s expenses with respect to certain items.  Sanford v.              
          Commissioner, 50 T.C. 823, 827 (1968), affd. per curiam 412 F.2d            
          201 (2d Cir. 1969).  Section 274(d) imposes strict substantiation           
          requirements for listed property as defined in section                      
          280F(d)(4), gifts, travel, entertainment, and meal expenses.                
          Sec. 1.274-5T(a), Temporary Income Tax Regs., 50 Fed. Reg. 46014            
          (Nov. 6, 1985).  To obtain a deduction for a listed property,               
          travel, meal, or entertainment expense, a taxpayer must                     
          substantiate by adequate records or sufficient evidence to                  






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