- 7 - 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 orPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 NextLast modified: March 27, 2008