Barry L. Morris - Page 5

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               Generally, the Court may allow for the deduction of a                  
          claimed expense (other than those subjected to the strict                   
          substantiation requirements of section 274) even where the                  
          taxpayer is unable to fully substantiate it, provided the Court             
          has an evidentiary basis for doing so.  Cohan v. Commissioner, 39           
          F.2d 540, 543-544 (2d Cir. 1930); Vanicek v. Commissioner, 85               
          T.C. 731, 742-743 (1985); sec. 1.274-5T(a), Temporary Income Tax            
          Regs., 50 Fed. Reg. 46014 (Nov. 6, 1985).  In these instances,              
          the Court is permitted to approximate the allowable expense,                
          bearing heavily against the taxpayer whose inexactitude is of his           
          or her own making.  Cohan v. Commissioner, supra at 544.                    
               The taxpayer bears the burden of proving entitlement to any            
          claimed exemptions or deductions; the taxpayer’s burden includes            
          the burden of substantiation.  Hradesky v. Commissioner, 65 T.C.            
          87, 89-90 (1975), affd. 540 F.2d 821 (5th Cir. 1976).  Although             
          section 7491(a) may shift the burden of proof to the Commissioner           
          in specified circumstances, petitioner has not established that             
          he meets the requirements under section 7491(a)(1) and (2) for              
          such a shift.                                                               
          II. Business Expense Deductions                                             
               Section 162(a) authorizes a deduction for “all the ordinary            
          and necessary expenses paid or incurred during the taxable year             
          in carrying on any trade or business”.  A trade or business                 
          expense is ordinary for purposes of section 162 if it is normal             

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