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593 (1964). We found petitioner’s testimony to be general,
vague, conclusory, and/or questionable in certain material
respects. On the record, we repeatedly noted petitioner’s lack
of credibility and veracity. Under the circumstances presented
here, we are not required to, and generally do not, rely on
petitioner’s testimony to sustain her burden of establishing
error in respondent’s determinations. See Lerch v. Commissioner,
877 F.2d 624, 631-632 (7th Cir. 1989), affg. T.C. Memo. 1987-295;
Geiger v. Commissioner, 440 F.2d 688, 689-690 (9th Cir. 1971),
affg. per curiam T.C. Memo. 1969-159; Tokarski v. Commissioner,
87 T.C. 74, 77 (1986).
When taxpayers establish that they have incurred deductible
expenses but are unable to substantiate the exact amounts, we can
estimate the deductible amount, but only if the taxpayers present
sufficient evidence to establish a rational basis for making the
estimate. See Cohan v. Commissioner, 39 F.2d 540, 543-544 (2d
Cir. 1930); Vanicek v. Commissioner, 85 T.C. 731, 742-743 (1985).
In estimating the amount allowable, we bear heavily upon
taxpayers whose inexactitude is of their own making. See
Cohan v. Commissioner, supra at 544. We may not use the Cohan
doctrine, however, to estimate expenses covered by section
274(d). See Sanford v. Commissioner, 50 T.C. 823, 827 (1968),
affd. per curiam 412 F.2d 201 (2d Cir. 1969); sec. 1.274-5T(a),
Temporary Income Tax Regs., 50 Fed. Reg. 46014 (Nov. 6, 1985).
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