Car expenses

When you don't have adequate records for automobile expense deductions, there is a special rule developed by the courts. The Cohan rule, named after noted songwriter/showman George M. Cohan, is based on approximation.

A court may agree to approximate your travel and entertainment expenses if your records are inadequate to establish actual expenses and you have some way to show your approximate expenses.

A court cannot be compelled to use the Cohan rule; it must be persuaded to do so because of special circumstances. Please note that the Cohan rule is only a last resort for claiming unsubstantial travel and entertainment expenses.