Christopher D. and Kristie M. Farran - Page 13

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          304 (citing Tokarski v. Commissioner, 87 T.C. 74, 77 (1986)),               
          affd. without published opinion 956 F.2d 1166 (9th Cir. 1992).              
          Unreimbursed Employee Business Expenses                                     
               We shall now consider whether petitioners are entitled to              
          deduct the claimed expenses, beginning with the unreimbursed                
          employee business expenses petitioners claimed on Schedule A.               
               In general, all ordinary and necessary expenses paid or                
          incurred in carrying on a trade or business during the taxable              
          year are deductible, but personal, living, or family expenses are           
          not deductible.  Secs. 162(a), 262.  Services performed by an               
          employee constitute a trade or business.  O’Malley v.                       
          Commissioner, 91 T.C. 352, 363-364 (1988); sec. 1.162-17(a),                
          Income Tax Regs.                                                            
               If a taxpayer establishes that he or she paid or incurred a            
          deductible business expense but does not establish the amount of            
          the deduction, we may approximate the amount of the allowable               
          deduction, 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).                                                            

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