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home was used occasionally in YOC's business. We conclude that
YOC is to be treated as the owner of the motor home.
Petitioners, however, did not offer any records or other
documentation to substantiate the specific business use of the
motor home, and the record does reflect substantial personal use
by Elvin of the motor home.
We conclude with regard to the motor home that the expenses
of $10,697 in 1983 and $16,802 in 1984 paid by YOC for
maintenance, improvement, and operation of the motor home are not
deductible business expenses of YOC, and Elvin is to be treated
as receiving constructive dividends in those amounts.
The Sylva Residence -- Constructive Dividends
Petitioners argue that the $65,000 used by Elvin in 1984 to
purchase the Sylva Residence represented a loan by YOC to
Yarbrough Leasing, not a constructive dividend to Elvin.
Respondent argues that the $65,000 should to be treated as a
constructive dividend to Elvin.
The Sylva Residence was purchased as a residence for Elvin's
son Buddy while Buddy attended college. During 1984 and 1985,
Elvin received rental payments of $200 per month from Buddy's
roommate, who also resided at the Sylva Residence.
Although the YOC check for $65,000 that was used to purchase
the Sylva Residence was made payable to Yarbrough Leasing, Elvin,
in substance and effect, withdrew the $65,000 from YOC and
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