James A. and Debra J. Poyda - Page 8




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          subject to seasonal variations, and Ms. Poyda was engaged in                
          other time-consuming activities--employment with the Medford Area           
          Chamber of Commerce, helping with petitioners’ other business               
          activities, and her role in raising their four children.  Both of           
          these facts support the conclusion that Ms. Poyda did not adhere            
          to the alleged contract by working 35 hours each week.                      
               Third, while Ms. Poyda did perform some services in                    
          connection with the tree farm, these services were performed more           
          in the nature of a co-owner than an employee.  Petitioners                  
          stipulated the fact that they owned and operated the tree farm              
          and that they jointly owned the property on which the farm was              
          located.  This signifies joint responsibility for the farm,                 
          rather than the existence of an employer-employee relationship.             
          Furthermore, Ms. Poyda also assisted her husband with similar               
          activities in their other business endeavors without receiving              
          compensation therefor.  This indicates she was not treated as an            
          employee in any of these contexts.                                          
               We find that the expenses were not ordinary and necessary              
          expenses incurred in connection with the tree farm.  See Welch v.           
          Helvering, supra.  There is nothing in the record to indicate any           
          connection between the medical benefits Ms. Poyda received and              
          her assistance on the farm, or even her assistance with                     
          petitioners’ other endeavors, regardless of whether that                    
          assistance was as an employee or as a co-owner.  We find the                






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