- 7 -
is entitled to the deductions. Sec. 6001; Hradesky v.
Commissioner, 65 T.C. 87 (1975), affd. per curiam 540 F.2d 821
(5th Cir. 1976); sec. 1.6001-1(a), (e), Income Tax Regs. If a
taxpayer establishes that he or she paid or incurred a deductible
business expense but does not establish the amount of the
deduction, this Court may approximate the amount of allowable
business deductions, bearing heavily against the taxpayer whose
inexactitude is of his or her own making. Cohan v. Commissioner,
39 F.2d 540, 543-544 (2d Cir. 1930). For the Cohan rule to
apply, however, a basis must exist on which this Court can make
an approximation. Vanicek v. Commissioner, 85 T.C. 731, 742-743
(1985). Without such a basis, any allowance would amount to
unguided largesse. Williams v. United States, 245 F.2d 559, 560
(5th Cir. 1957).
Strict Substantiation
With respect to certain business expenses specified in
section 274(d), more stringent substantiation requirements apply.
No deduction may be allowed for expenses incurred for travel
expenses, specifically including meals and entertainment, and
“listed property”,7 unless the taxpayer substantiates certain
elements. Passenger automobiles are “listed property” under
section 280F(d)(4)(A)(i).
7Listed property is defined in sec. 280F(d)(4).
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