According to the Cohan rule, taxpayers may deduct reasonable estimates of expenses where they have no evidence, such as a receipt, to substantiate the actual amount.

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The Cohan rule allows taxpayers to make a reasonable estimate of expenses if they have no evidence to substantiate the actual amount. However, the estimate must be based on a reasonable basis and the taxpayer must have actually incurred the expenses.

According to the Cohan Rule, Taxpayers May Deduct Reasonable Estimates