Cohan rule

Definition of "Cohan rule"
  1. A court ruling that permits taxpayers to estimate expenses for tax deductions when their records are not available, except for business travel and entertainment costs
How to use "Cohan rule" in a sentence
  1. Under the Cohan rule, John was able to estimate his expenses for office supplies due to the loss of his receipts.
  2. She successfully utilized the Cohan rule to claim tax deductions even though her paperwork got destroyed in a house fire.
  3. The IRS auditors didn't question the use of the Cohan rule when the company's records were destroyed in a flood.

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