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dividend relating to the Capriole determined by respondent for
1984 and 1985. See Nicholls, North, Buse Co. v. Commissioner, 56
T.C. 1225, 1241 (1971).
The Sea Ray Boat -- Claimed Business Expenses
and Constructive Dividends
Respondent argues that Elvin should be treated as owner of
the Sea Ray Boat and that YOC held mere nominal legal title to
the boat. Respondent observes that Elvin negotiated for the
purchase of the boat, that the boat was not traded in on a new
automobile, that the seller of the boat understood he was selling
the boat to Elvin for Elvin's personal use, that after purchase
of the boat YOC's employees did not attempt to resell the boat,
that the boat was used solely for Elvin's personal use, and that
a log was not kept reflecting any business use of the boat.
Petitioners argue that YOC should be treated as owner of the
Sea Ray Boat. Petitioners argue that title to the boat was in
the name of YOC and that the Sea Ray Boat was used for business.
Although YOC provided the funds necessary for Elvin to
purchase the Sea Ray Boat, the Sea Ray Boat was used solely for
Elvin's personal use. The record does not reflect any business
use of the Sea Ray Boat.
We conclude that Elvin is to be treated as the owner of the
Sea Ray Boat. The business expense deductions of $2,077,
$3,837, and $1,228, that YOC claimed for 1983, 1984, and 1985,
relating to the Sea Ray Boat are disallowed and are to be treated
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