Bernardus A. P. Dobbe and Klazina W. Dobbe - Page 9




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          however, does not reveal whether the new solarium was used for              
          business purposes after September 30, 1993.  On its FYE 1993                
          Federal income tax return, Holland America deducted the entire              
          cost of the new solarium as a “small tools” expense.                        
               Miscellaneous Expenses                                                 
               During FYE 1993, Holland America paid various expenses                 
          associated with the property located at 1066 South Pekin Road,              
          including electricity, property tax, and hazard insurance                   
          premiums.                                                                   
          Holland America paid and deducted the entire electricity                    
          bill associated with the property for FYE 1993.  In FYE 1993,               
          there were approximately six or seven separate electricity meters           
          for various buildings on the property.  There was only one                  
          electricity meter attached to Mr. and Mrs. Dobbe’s residence.               
          Holland America paid the $2,000 electricity bill attributable to            
          the Dobbe residence, as shown by a separate electricity meter,              
          and deducted the entire amount on its Federal income tax return.            
               Holland America also paid, and claimed a deduction for, the            
          entire property tax associated with the property at 1066 South              
          Pekin Road, including that portion determined to be associated              
          with Mr. and Mrs. Dobbe’s residence ($2,054).                               
               Lastly, Holland America paid, and claimed a deduction for,             
          all hazard insurance premiums associated with the property                  








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