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disallowed for lack of a business purpose, the auto lease
payments in the total amounts of $11,347 and $11,151,
respectively. This automobile was used, in part, for business
and, in part, for personal purposes. For 1982, 1983, and 1984,
Service deducted, and respondent disallowed for lack of
business purpose, $2,631, $2,513, and $8,717 of expenditures in
connection with the maintenance and operation of a 1977
Eldorado. During the period under consideration, three
automobiles were used by the Johnsons in connection with the
businesses: The 1977 Eldorado, the leased Mercedes-Benz, and a
1980 Buick. The automobiles were used for both business and
personal purposes.
During 1983, Service purchased a beach condominium (beach
condo) for about $140,000. Improvements and furnishings of
approximately $20,000 to $22,000 were added. The Johnsons
occasionally used the beach condo for personal use. Service
claimed $1,057 for 1983 as "Mortgage Service Expense", and the
claimed amount consisted of loan prepayments, transfer stamp
tax, and related fees in connection with the purchase of the
beach condo. Respondent disallowed the amount for lack of a
business purpose. Service, in connection with the beach condo,
deducted $7,186 and $410 for 1983 and 1984, respectively, for
decorating. Of the $7,186, $1,904 was allowed by respondent
because it was for decorating corporate offices, and the
remainder of these amounts, which involved the beach condo,
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