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for the estimate. Cohan v. Commissioner, 39 F.2d 540, 543-544
(2d Cir. 1930); Vanicek v. Commissioner, 85 T.C. 731, 743 (1985).
The parties stipulated that petitioner substantiated only
$260,111 of the $536,473 in claimed Schedule C expenses.
Petitioner asserts that he was unable to substantiate the
remaining $276,362 because his sister and brother-in-law now
operate Sam Transportation and either they refused to give
petitioner the records or the records were destroyed by fire.
While the Court found petitioner to be sincere, we are
nevertheless unable to approximate the amount of expenses because
we do not have a reasonable evidentiary basis on which to do so.
Therefore, we sustain respondent’s determination that petitioner
is entitled to deduct Schedule C expenses only to the extent
substantiated, $260,111.
Section 1401 imposes a tax on the self-employment income of
individuals. Self-employment income means the net earnings from
self-employment derived by an individual. Sec. 1402(b).
Respondent determined that the net profit petitioner received
from the operation of Sam Transportation constituted self-
employment income and, consequently, petitioner was liable for
self-employment tax. Petitioner bears the burden of proving
respondent’s determination incorrect. See Rule 142(a); Welch v.
Helvering, 290 U.S. 111, 115 (1933). Petitioner presented no
testimony or other evidence regarding his liability for self-
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