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the fair rental value of the Rolls Royce was $85 to $98 per day.6
However, his testimony in this regard was self-serving and
uncorroborated, and he failed to specify how many days he drove the
automobile. Likewise, respondent failed to present any evidence as
to the fair rental value of the Rolls Royce. In this regard, at
trial, we rejected (as not relevant) the testimony of respondent's
expert witness regarding the fair rental value of a Rolls Royce in
1997 because the years in issue were 1991 through 1994. Thus, the
record is completely devoid of the fair market value of the Rolls
Royce for the years at issue. Therefore, we will rely on the
actual operating expenses paid by the corporate petitioner to
maintain the Rolls Royce to determine the amount of constructive
dividends paid to the individual petitioners. See Ross v.
Commissioner, T.C. Memo. 1990-23; see also Cirelli v. Commissioner,
82 T.C. 335, 352 (1984); Tyson v. Commissioner, supra.
Mohan Roy testified that the insurance premiums paid by Roy,
Inc. with respect to the Rolls Royce were included in his salary as
a Roy, Inc. employee. The accountant who prepared the 1994 Federal
income tax returns for both Roy, Inc. and the Roys also testified
that insurance premiums paid by Roy, Inc. were included in Mohan
6 Mohan Roy reached this figure by estimating the annual
cost of a 3-year lease on a $188,000 1997 Rolls Royce and
dividing that by 365 days.
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