Oregon Tax Court Partially Grants Deductions for Garbage-Hauling Business Expenses

The Oregon Tax Court, Magistrate Division, partially granted the taxpayers’ request for deductions related to their garbage-hauling business expenses. The dispute arose from the Department of Revenue’s disallowance of all vehicle and repair expenses claimed by the taxpayers for their garbage-hauling company in the 2016 tax year. While the court rejected the taxpayers’ claims for shop maintenance expenses due to a lack of evidence, it applied the Cohan rule to estimate allowable vehicle expenses based on customer numbers and route distances. The court’s decision allowed a $527 deduction for car and truck expenses, significantly less than the originally claimed amount, ...