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We conclude that the trip to Hawaii was primarily of a
personal nature. Respondent proved by clear and convincing
evidence that $1,974.74 ($2,014.69 minus $39.95) of Markette’s
expenditures for this trip was associated with that purpose.
Thus, Betsy received a $1,974.74 constructive dividend in 1983
from Markette.
We hold for respondent as to $1,974.74 and for petitioner as
to $3,351.77 ($3,311.82 plus $39.95), on this issue.
Lake Tahoe
Markette paid $1,351.50 for round-trip airline tickets for
petitioner, Betsy, and their children to visit Lake Tahoe. See
Findings Check No. 1896--Lake Tahoe, supra. However, petitioner
did not go on that trip, and American Express refunded the $318
cost of his ticket. Thus, the net Markette payment for this trip
was $1,033.50. Betsy testified that the primary purpose of the
family’s usual midsummer Lake Tahoe trips was pleasure, and we
have found that that was the primary purpose of this trip.
On brief, petitioner refers to (1) Betsy’s testimony that
“we looked at investment properties around the Tahoe area” and
(2) his testimony “that he talked about the corporations’ assets
with Betsy ‘every waking moment, maybe too much.’” Firstly,
there is no basis for allocating any part of the expenses of this
Lake Tahoe trip to Sley Corporations business, as distinguished
from petitioner’s and Betsy’s personal and family purposes.
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