Jordon Jay Fingar - Page 13

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          York City was extremely expensive; and that he used the car                 
          solely for business to transport clients.  Given the availability           
          of mass transportation in New York City, the constant traffic               
          congestion, and the high cost of, as well as the restrictions on,           
          parking, we find highly persuasive petitioner's testimony that he           
          did not use his car for commuting.                                          
               At trial, respondent conceded that for 1979 and 1980,                  
          petitioner substantiated automobile expenses of at least $3,162             
          and $1,739 respectively.  Thus, on the basis of the entire                  
          record, we hold that petitioner may deduct $3,162 in 1979 and               
          $1,739 in 1980.                                                             
               B.  Sailboat                                                           
               Respondent determined that for 1979 and 1980 petitioner is             
          not entitled to deduct any expenses incurred in connection with             
          the ownership and operation of the Blue Chip, because he failed             
          to establish that the expenses he incurred in connection with the           
          boat were ordinary and necessary under section 162.  Petitioner             
          asserts that he used the boat solely for business purposes;                 
          therefore, he contends that his deductions for the taxable years            
          in issue are fully allowable.  However, section 162 does not                
          control this issue.                                                         
               For tax years beginning in 1979, section 274(a)(1)(B)                  
          strictly disallows the deduction, otherwise allowable, of an item           
          with respect to a facility used for, or in connection with,                 
          entertainment as defined in section 274(a)(1)(A), such as a boat.           




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