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employer-provided automobile generally is equal to the amount
that an individual would have to pay in an arm’s-length transac-
tion to lease the same or comparable automobile on the same or
comparable conditions in the geographic area in which the automo-
bile is available for use. Sec. 1.61-21(b)(4)(i), Income Tax
Regs.
On the record before us, we find that petitioners have
failed to establish that the fair market value of Mr. Whitehead’s
use of certain Burien Nissan automobiles during the years at
issue is equal to the value that they reported for such use in
their joint return for each of those years.
Petitioners’ Position With Respect to Ms. Whitehead’s Use of
Certain Burien Nissan Automobiles During the Years at Issue
With respect to the parties’ dispute as to whether any
portion of petitioners’ respective uses of certain Burien Nissan
automobiles during the years at issue constituted a business use
of such automobiles, petitioners appear to contend that only Mr.
Whitehead, and not Ms. Whitehead, had any business use of certain
Burien Nissan automobiles during those years.36 The parties’
35(...continued)
in fact use that special valuation rule. In any event, on the
record before us, we find that petitioners have failed to show
that they are entitled to use the automobile lease valuation rule
to calculate the value of their respective uses of certain Burien
Nissan automobiles during the years at issue. See sec. 1.61-
21(c)(2)(ii), Income Tax Regs.
36On brief, petitioners contend that they could have estab-
(continued...)
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