- 5 -
affg. 27 T.C. 413 (1956); Cohan v. Commissioner, 39 F.2d 540,
543-544 (2d Cir. 1930). In order for the Court to estimate the
amount of an expense, however, the Court must have some basis
upon which an estimate may be made. See Vanicek v. Commissioner,
85 T.C. 731, 742-743 (1985). Without such a basis, an allowance
would amount to unguided largesse. See Williams v. United
States, 245 F.2d 559, 560 (5th Cir. 1957).
Certain business deductions described in section 274 are
subject to strict rules of substantiation that supersede the
doctrine in Cohan v. Commissioner, supra. See sec. 1.274-5T(c),
Temporary Income Tax Regs., 50 Fed. Reg. 46016 (Nov. 6, 1985).
Section 274(d) provides that no deduction shall be allowed with
respect to: (a) Any traveling expense, including meals and
lodging away from home; (b) any item related to an activity of a
type considered to be entertainment, amusement, or recreation; or
(c) the use of any “listed property”, as defined in section
280F(d)(4), unless the taxpayer substantiates certain elements.
“Listed property” includes any passenger automobile, sec.
280F(d)(4)(A)(i), and any cellular telephone, sec.
280F(d)(4)(A)(v).
To meet the requirements of section 274(d) the taxpayer must
present adequate records or sufficient evidence to corroborate
the taxpayer’s own testimony to establish: (1) The amount of the
expenditure or use based on the appropriate measure (mileage may
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011