- 18 -
Oxford Dev. Corp. v. Commissioner, T.C. Memo. 1964-182; see also
Interstate Transit Lines v. Commissioner, 319 U.S. 590, 593-594
(1943); Deputy v. du Pont, 308 U.S. at 493-494.
On the basis of the cost balances of aircraft on hand by
Dolphin as compared to the entire controlled group, we find that
the following are the percentages of the total cost of aircraft
of the entire group held for sale and lease which were owned by
Dolphin during the years in issue:
FYE 1991 FYE 1992 FYE 1993
41.2% 38.0% 46.6%
Because Mr. Ciaravella had interests in entities other than
Dolphin that owned aircraft, we are not convinced that the entire
amount spent by Dolphin on race car expenditures reasonably
compares with the benefit that it, as opposed to other members of
the Ciaravella controlled group, could reasonably expect to
derive. When Mr. Ciaravella made contacts at the races, he was
trying to sell and lease aircraft held by Dolphin, Nomad, and
Sarasota, not Dolphin exclusively. Consequently, Dolphin is not
entitled to deduct, on the Icarus consolidated return, the entire
amount of the race car expenses that it paid.
Where a taxpayer establishes his entitlement to a deduction,
but does not establish the amount of that deduction, we are
permitted to estimate the amount allowable, Cohan v.
Commissioner, 39 F.2d 540, 543-544 (2d Cir. 1930); Rolland v.
Commissioner, T.C. Memo. 1959-161, affd. 285 F.2d 760 (5th Cir.
1961); Gill v. Commissioner, T.C. Memo. 1994-92; Boomershine v.
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