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of $12,000 claimed to have been paid for rent due to petitioner’s
lack of substantiation.
Where a taxpayer establishes entitlement to a deduction but
does not establish the amount of the deduction, the Court in some
circumstances is allowed to estimate the amount allowable. Cohan
v. Commissioner, 39 F.2d 540 (2d Cir. 1930). But see sec. 1.274-
5T(a), Temporary Income Tax Regs., supra. However, there must be
sufficient evidence in the record to permit the Court to conclude
that a deductible expense was incurred in at least the amount
allowed. Williams v. United States, 245 F.2d 559, 560 (5th Cir.
1957). In estimating the amount allowable, the Court bears
heavily against the taxpayer whose inexactitude is of his or her
own making. Cohan v. Commissioner, supra at 544. Pursuant to
Cohan, the Court allows petitioner a deduction of $3,000 as
rental expense in the conduct of his self-employment activity.
Petitioners also claimed on Schedule C of their return a
deduction of $5,044 for car and truck expenses. Respondent
disallowed the claimed deduction for the reason that the expenses
related to the use of automobiles and, for such expenses, the
strict substantiation rules of section 274(d) applied. Since
petitioners did not maintain the necessary books and records
relating to the use of the vehicles as required by section
274(d), the $5,044 claimed deduction was disallowed.
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