Cohan rule
- 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
- Under the Cohan rule, John was able to estimate his expenses for office supplies due to the loss of his receipts.
- She successfully utilized the Cohan rule to claim tax deductions even though her paperwork got destroyed in a house fire.
- 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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