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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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