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of these Miami-Key West expenses was paid for by Markette check
No. 2162.17
The purpose of this trip was for Betsy and the children to
take a personal vacation to Miami during the spring school break.
The side trip to Key West was to see Halley’s Comet. The son was
sick, and so he stayed in Miami while the others went to Key
West.
Check No. 2162--Miami, Key West, Son. The American Express
April invoice includes charges totaling $827 for three round-trip
Eastern Airlines tickets to Miami, to leave Washington, D.C., on
April 11, 1986. The tickets, for petitioner, Betsy, and the son,
cost $289, $319, and $219, respectively. The American Express
April invoice also includes charges totaling $352 for three one-
17 As shown supra table 14, respondent determined that a
net of $1,656.33 ($4,713.94 less $3,057.61) of check No. 2162 was
a constructive dividend. The remaining amount, $3,057.61,
represents $897 of travel expenses and $2,160.61 in connection
with a computer; respondent later concluded that the computer was
not paid for by check No. 2162. Respondent has not identified
which travel expenses are included in the $897 that was allowed.
Also, respondent has not asked for an increased deficiency, or
otherwise acted, with regard to the $2,160.61 computer expense
that was allowed.
As we noted in the next-to-last paragraph of supra Check
Nos. 2137, 2148, and 2203--Miami, Markette received a $399 credit
on its American Express April invoice. Markette used this credit
to pay charges appearing on this invoice, and paid the balance by
its check No. 2162. See infra table 12. For purposes of
determining whether Markette paid for an item, and whether that
payment constitutes a constructive dividend, it does not make any
difference whether Markette’s payment was accomplished by
applying the credit or by check No. 2162. For convenience in our
findings we shall refer to all the payments of April invoice
items as being accomplished by check No. 2162.
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