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Anne G. Batter, for petitioner.
Robert M. Fowler, for respondent.
OPINION
GERBER, Judge: The parties filed cross-motions for partial
summary judgment, seeking resolution of whether petitioner is
allowed to deduct its expenses in operating its company aircraft
for the benefit of employees or whether the deduction is limited
to the value of the use of the aircraft--the amount reportable by
petitioner’s employees. The parties’ controversy raises the
question of whether and how section 2741 applies for petitioner’s
1992 and 1993 taxable years.
Background
Petitioner is a corporation with its principal place of
business in Kansas City, Missouri. Petitioner’s president and
vice president are Dwight Sutherland (Dwight) and Perry
Sutherland (Perry), respectively. Petitioner is principally
engaged in the retail lumber business with outlets located in
eight Texas cities. In addition to the retail lumber business,
petitioner owned a 1976 Model 25 Lear Jet, which was used for
travel related to the lumber business and for its air charter
1 Unless otherwise indicated, section references are to the
Internal Revenue Code in effect for the taxable years under
consideration, and Rule references are to the Tax Court’s Rules
of Practice and Procedure.
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Last modified: May 25, 2011