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amount of a deductible expense only when the taxpayer provides
evidence sufficient to establish a rational basis for making the
estimate. See Vanicek v. Commissioner, 85 T.C. 731, 743 (1985).
A. Legal Expenses, Supplies, Insurance, Taxes and Licenses,
Oil and Gas
With respect to the deductions claimed for legal expenses,
supplies, insurance, taxes and licenses, and oil and gas,
petitioner’s evidence consisted of a spreadsheet listing the
numbers he put on his return.2 Petitioner did not testify as to
these items nor submit any receipts to verify his payment of the
expenses in 2002. See secs. 446(a), (c), 461(a), 6001. Without
more, the Court finds that petitioner has not adequately
substantiated the deductions and that he has failed to provide
sufficient evidence for the Court to make a rational estimate.
Therefore, the deductions are not allowable, and respondent’s
determinations are sustained.
B. Parking and Tolls
Generally, a taxpayer may deduct the cost of operating an
automobile to the extent that it is used in a trade or business.
See Rev. Proc. 2002-61, 2002-2 C.B. 616. Parking fees and tolls
may be deducted as separate items. Id. Petitioner’s evidence
consisted of his spreadsheet. He failed to present any receipts
2 With respect to his spreadsheet, petitioner testified
that he used his expenses from 2004 to generate “reasonable
expenses” for 2002 since his records for 2002 were allegedly
destroyed in a fire in 2006.
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Last modified: March 27, 2008