Memorandum Findings of Fact and Opinion
This proceeding involves a deficiency in income tax for the calendar year 1947 in the amount of $585.36.
The issue involved is the amount which the petitioner is entitled to deduct for travel expenses, entertainment, and miscellaneous business expenses in the taxable year 1947.
Findings of Fact
The petitioner, an individual residing in Philadelphia, Pennsylvania, during the taxable year involved, filed his return with the collector of internal revenue for the first district of Pennsylvania.
During the taxable year in question the petitioner was employed as a liquor salesman on a straight commission basis. His territory consisted of the southern portion of New Jersey. The petitioner was required to pay all of his expenses. He traveled by automobile, using a 1941 Cadillac car. The petitioner did not keep any complete record of his daily travel and other business expenses. He traveled five days a week.
On his return for 1947 the petitioner reported a gross income of $9,650.47, consisting of commissions. He claimed deductions of $4,417.90, 1*202 which he itemized as follows:
| Hotel expense: | ||
| 46 weeks at $22 per week | $1,012.00 | |
| 6 weeks at $25 per week | 150.00 | $1,162.00 |
| Automobile expense: | ||
| Gasoline | 558.90 | |
| Oil | 171.50 | |
| Repairs | 575.00 | |
| Tires | 110.00 | |
| Garage | 240.00 | |
| Insurance | 90.00 | |
| License | 25.00 | |
| Depreciation | 315.00 | 2,085.40 |
| Meals: | ||
| 15 meals per week for 52 weeks at | ||
| $1.50 | 1,170.00 | |
| Total | $4,417.40 |
The petitioner also claimed the sum of $780 for entertainment and other miscellaneous expenses.
In determining his deficiency the respondent allowed as deductions the amount of $2,208.95 for travel expenses and the amount of $390 for entertainment and other miscellaneous expenses. The allowances were 50 per cent of the respective amounts claimed by the petitioner.
The amount of petitioner's travel expenses deductible in the taxable year was $3,225.
Opinion
LEMIRE, Judge: The petitioner appeared and testified at the hearing but has not filed any brief. While the petitioner kept no books and no detailed account of his expenditures in the pursuit of his business he has offered in evidence certain vouchers. From his testimony and the receipted bills*203 we are able to determine the approximate amount of such expenditures, which, under the rationale of the case of Cohan v. Commissioner, 39 Fed. (2d) 540, we have found to be in the total sum of $3,225, computed as follows:
| Items of Expense | Amount |
| Food and lodging | $2,080 |
| Gasoline | 460 |
| Oil | 75 |
| Repairs | 235 |
| Tires | 110 |
| Garage | 150 |
| Insurance | 90 |
| License | 25 |
| Depreciation | |
| Total | $3,225 |
The record discloses that the amount of $780, claimed as a deduction for entertainment and other miscellaneous expenses, except for the amount of $60, representing union dues, was based on pure estimate. The oral testimony in support of such expenditures is very meager. Upon this record, we think, the respondent's allowance of 50 per cent, or $390, is liberal and such determination is sustained.
We hold that the petitioner is entitled to deduct in the taxable year 1947 the amount of $3,225, as travel expenses incurred and paid in such year, under section 23 (a) (1) (A) of the Internal Revenue Code.
Decision will be entered under Rule 50.
Footnotes
1. Amount overstated by 50 cents.↩