Dennis E. Runkle and Debra A. Runkle - Page 35

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          evidence.  Beam v. Commissioner, T.C. Memo. 1990-304 (citing                
          Tokarski v. Commissioner, 87 T.C. 74, 77 (1986)), affd. 956 F.2d            
          1166 (9th Cir. 1992).                                                       
               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).                                                            
               We now address whether Mr. Runkle is allowed to deduct                 
          insurance-related expenses in excess of the amount respondent               
          allowed in the deficiency notice.  Mr. Runkle argues strenuously            
          that, despite having no records, the Cohan rule allows him to               
          deduct expenses in excess of the amount respondent already                  
          allowed.  We disagree.                                                      
               Although the Cohan rule allows us to estimate the amount of            
          deductible expenses in certain situations, no such situation                
          exists here.  First, Mr. Runkle failed to maintain books and                
          records of his income and expenses, and he also destroyed what              

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