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290 U.S. 111, 115 (1933). Petitioner also bears the burden of
proving its entitlement to any deduction claimed. INDOPCO, Inc.
v. Commissioner, 503 U.S. 79 (1992); New Colonial Ice Co. v.
Helvering, 292 U.S. 435 (1934).
Petitioner argues that the evidence establishes that it used
the Centurion entirely for business and that it did not use the
Centurion at all for the purpose of entertainment, amusement, or
recreation. Petitioner asserts that the Centurion was a business
facility with offices on board and that it also used the
Centurion to film sailboat races and experiment with a digital
camera for the production of documentaries. We disagree with
petitioner’s assertions as to its use of the Centurion. On the
basis of the record before us, we are convinced that petitioner’s
use of the Centurion had little, if any, relationship to its
business but was primarily (if not solely) for the personal
enjoyment, entertainment, amusement, and/or recreation of Roach,
an avid sailor and racer of yachts.6 We conclude that the
5(...continued)
Sec. 7491(a)(1) provides that the burden of proof shifts to the
Commissioner in specified circumstances. Petitioner makes no
argument that sec. 7491(a)(1) applies to this case, and we
conclude that it does not. See, e.g., sec. 7491(a)(2) (sec.
7491(a)(1) applies with respect to an issue only if the taxpayer
meets certain requirements).
6 While Roach testified that the Centurion was purchased to
film documentaries on yacht racing, Roach’s longtime accountant,
Jung, made no mention of such a purpose during his testimony.
Nor did the minutes of petitioner’s board meetings make any
(continued...)
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