- 9 -
2001-7; Martens v. Commissioner, T.C. Memo. 1990-42, affd.
without published opinion 934 F.2d 319 (4th Cir. 1991).
Petitioner did not introduce any credible evidence which
would provide a basis for the Court to conclude that deductible
compensation was paid. Nor is there sufficient evidence to
estimate the amount of compensation paid. We conclude that
petitioner is not entitled to a business expense deduction for
the $18,600 he claims he paid to his crew.5
B. Transportation Expense Deductions
Petitioner asserts that his truck was driven approximately
100,000 miles during 2001 for his business and that Mr. McKinney
kept all the receipts for gasoline purchases and other business
expenses. Mr. Burrell asserts that it was he who drove
petitioner’s truck to the job sites and that he drove close to
100,000 miles for the business in 2001.
Section 274(d) supersedes the general rule of Cohan v.
Commissioner, supra, and prohibits the Court from estimating the
taxpayer’s expenses with respect to certain items. Sanford v.
Commissioner, 50 T.C. 823, 827-828 (1968), affd. per curiam 412
5 The Court notes that each member of petitioner’s crew is
related to petitioner (two sons, two nephews, and a grandson).
When deductions are claimed for compensation paid to family
members, the Court carefully scrutinizes the transactions. Hamdi
v. Commissioner, T.C. Memo. 1993-38, affd. without published
opinion 23 F.3d 407 (6th Cir. 1994). Because we conclude that
petitioner has failed adequately to substantiate the payments
claimed, further scrutiny is not required.
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