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wages or salary. Sec. 61(a)(1). Whether personal use of
corporate property constitutes constructive dividends or
constructive wages is a question of fact. Loftin & Woodard, Inc.
v. United States, 557 F.2d at 1242; Goldstein v. Commissioner,
298 F.2d 562, 566 (9th Cir. 1962), affg. T.C. Memo. 1960-276.
Whether amounts are paid as compensation turns on the
factual determination of whether the payor intends at the time
that the payment is made to compensate the recipient for services
performed. See Whitcomb v. Commissioner, 733 F.2d 191, 194 (1st
Cir. 1984), affg. 81 T.C. 505 (1983); Neonatology Associates,
P.A. v. Commissioner, 115 T.C. 43, 92 (2000); King's Ct. Mobile
Home Park, Inc. v. Commissioner, 98 T.C. at 514-515; Paula
Constr. Co. v. Commissioner, 58 T.C. 1055, 1058-1059 (1972),
affd. without published opinion 474 F.2d 1345 (5th Cir. 1973).
In lieu of wages, Beck's Liquors paid the real estate taxes
on the condominium in which Michael resided, the insurance on the
Topaz, and the premium on Michael's life insurance policy. For
the occasional work Michelle performed for the store, Beck's
Liquors paid for the insurance on the Buick she drove. Those
payments are not constructive dividends to Mr. Beck.
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