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in section 162. Commissioner v. Lincoln Elec. Co., 176 F.2d 815,
817 (6th Cir. 1949).
On its consolidated returns, Icarus deducted as advertising
expenses the Dolphin payments made through Innovative to
reimburse Mr. Ciaravella for his race car expenditures. The
burden is upon Icarus to prove that Dolphin's race car
expenditures were ordinary and necessary to its business of
selling and leasing aircraft. Rule 142(a); Amey & Monge, Inc. v.
Commissioner, 808 F.2d 758, 761 (11th Cir. 1987); Gill v.
Commissioner, supra; Brallier v. Commissioner, supra.
We find that there is a proximate relationship between the
race car expenditures and the Dolphin business. Mr. Ciaravella's
racing activities were well calculated to provide him national
exposure that he could take advantage of in his capacity as chief
executive and sales manager of Dolphin. Mr. Ciaravella met a
number of celebrities and other prominent people at the races.
These are the types of people who may be interested in buying or
leasing the high performance aircraft held by Dolphin and other
members of the Icarus controlled group. Accordingly, we conclude
that the expenses are ordinary.
We also find that the racing activity provided benefits to
the Dolphin business. Mr. Ciaravella's name and company were
announced at each race. Spectators saw the Dolphin logo on the
sides of the car. Even if, as respondent contends, the cars were
moving too fast during the actual races for the logo to be
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