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failed to show that the automobile-related expenses and
depreciation claimed are deductible. Furthermore, on his income
tax returns, petitioner claimed deductions for automobile
expenses and automobile depreciation, not fringe benefits taxable
as compensation to his employees. His position did not change
through trial. But, on brief, petitioner cites cases and
sections of the Internal Revenue Code that hold that an
employee's use of an employer-provided automobile is compensation
to the employee, and that the employer is entitled to a deduction
for providing automobiles to his employees. However, petitioner
presented no evidence that the use of the automobiles by the
employees was intended as compensation. There is no evidence
that the employees' Forms W-2 included an amount for automobile
usage, or that the employees were issued any other income
documents to reflect compensation received as a result of the use
of the automobiles. None of the employees who testified about
their use of the automobiles provided by petitioner claimed that
any usage of the automobile was to be treated as compensation.
We view petitioner's belated argument that the automobile
expenses are taxable as fringe benefits to employees as having
been made because of his inability to show that the automobiles
were used in his trade or business. In short, this fringe
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