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to verify that the expenditures were made in 2002, and he did not
testify as to these claimed expenses. See secs. 446(a), (c),
461(a), 6001. Without more, the Court concludes that he has not
substantiated the deductions nor provided any sufficient evidence
for the Court to make a rational estimate. Therefore, he is not
entitled to the deductions, and respondent’s determinations are
sustained.
C. Expenses Subject to Section 274(d)
Section 274(d) supersedes the Cohan rule, and the Court
cannot estimate a taxpayer’s expenses with respect to certain
items. See Sanford v. Commissioner, 50 T.C. 823, 827, (1968),
affd. per curiam 412 F.2d 201 (2d Cir. 1969). Section 274(d)
provides that no deduction is allowable for expenses related to:
(1) Travel; (2) amusement, recreation, or entertainment;
(3) gifts; or (4) “listed property”, unless the taxpayer complies
with certain strict substantiation requirements. To satisfy the
strict substantiation requirements, the taxpayer must
substantiate the amount, the time and place of the travel or
entertainment, the use of the property or facility, the date and
description of the gift, the business purpose of an expense, and
the business relationship to the taxpayer of the persons
entertained or receiving the gift. See sec. 274(d); sec.
1.274-5T, Temporary Income Tax Regs., 50 Fed. Reg. 46014 (Nov. 6,
1985). If the amount is not substantiated by adequate records or
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