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Simple English definitions for legal terms

Cohan rule

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A quick definition of Cohan rule:

The Cohan rule is a law that says if you don't have records of how much money you spent on something, you can make a good guess and still get a tax deduction. This rule was made because sometimes it's hard to keep track of everything you spend money on. But, it's important to remember that this rule doesn't work for everything and there are some things you can't guess about when it comes to taxes.

A more thorough explanation:

The Cohan rule is a legal principle that allows taxpayers to estimate their tax deductions when they are unable to produce records of actual expenditures. This rule is based on the common law and was established in the United States by the Second Circuit in the case of Cohan v. Commissioner.

Under the Cohan rule, taxpayers can claim certain tax deductions based on reasonable estimates, as long as there is some factual basis for the estimate. For example, if a taxpayer cannot produce receipts for business expenses, they may estimate the amount spent based on their memory or other evidence.

However, the Cohan rule does not apply to all tax deductions. It does not apply to items that are listed in Section 274(d) of the Internal Revenue Code, which includes expenses such as entertainment and travel.

For instance, if a self-employed individual cannot produce receipts for their office supplies, they may estimate the amount spent based on their past purchases or industry standards. This estimation can be used to claim a tax deduction for the expenses.

Another example is if a taxpayer cannot produce receipts for charitable donations, they may estimate the amount donated based on their bank statements or other evidence. This estimation can be used to claim a tax deduction for the donations.

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1a2b3c4d26z
19:43
crime and punishment top 1
1a2b3c4d26z
19:43
im okay with being called basic for that one
2big2fail
19:44
im gatekeeping my current book
Dkk
19:44
@2big2fail: looks like an Aristotle wannabe.
2big2fail
19:44
whatever. im just reading the financial times
1a2b3c4d26z
19:44
ft goated
concorde
19:45
I hate Dostoevsky
2big2fail
19:45
studying cloud computing, not the cloud of unknowing
babycat
19:45
@1a2b3c4d26z: serotonin is my fave houellebecq
1a2b3c4d26z
19:45
chefs kiss mwah
2big2fail
19:45
i honestly dont understand why people like houellebecq
1a2b3c4d26z
19:45
I'll try to describe how I feel about him
2big2fail
19:46
my favorite french authors are balzac and proust, as basic as that is
1a2b3c4d26z
19:46
basically I read his book and the whole time I read it I liked it so I finished it and I said hm I liked that book written by the author houellebecq
1a2b3c4d26z
19:46
balzac hahaha
2big2fail
19:46
lost illusions is goated
does it take longer to hear back if u applied to scholarships for schools like ucla???
Dkk
19:47
For Houellebecq I have only read https://en.wikipedia.org/wiki/Atomised
JumpySubsequentDolphin
19:47
you guys should read averroes
also do we think ucla wont do a wave tmw cuz they did a tiny one tonight, can schools do 2 days ina. row
JumpySubsequentDolphin
19:47
perhaps read the incoherence of philosophy first and then read averroes’ response: “the incoherence of the incoherence”
2big2fail
19:47
@Dkk: i read that one. just thought it was boring and not really in touch with reality
JumpySubsequentDolphin
19:47
SPLITTY usually they’re Friday!
Dkk
19:48
@2big2fail: I agree.
HUH then what the heck is this wave tonight ab are they tryna give us an attack???
babycat
19:49
@texaslawhopefully: don’t really remember it but my ibooks library says i read it in 2020. that whole year is a haze.
Dkk
19:51
My favorite book though, The Good Morty: https://archive.org/details/TheGoodMorty
Dkk
20:09
Man, I guess nobody like The Good Morty
2big2fail
20:10
didnt even look at it
Dkk
20:12
R.I.P.
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