- 16 -
the office to fulfill his duties as president of ATV. We
allocate Mr. Cutts’s first floor office to ATV for business use.
We also find the entire first floor and second floor
including the kitchen and dining room were used by ATV for
business use and allocate both floors to ATV.
According to Mr. Cutts’s measurements, the four rooms
originally claimed by him for his personal use, not including the
additional bathroom and bedroom near the den that we allocated to
Mr. Cutts, occupy only 860 square feet out of 3,500 square feet
on the third floor. We find it incredible that the other six
rooms on the third floor occupy more than 3 times the space of
the four rooms originally claimed by Mr. Cutts. Petitioners’
position becomes completely untenable when we take account of the
additional two rooms allocated to Mr. Cutts.
Inasmuch as the record evidence lacks a floor plan of the
main house or measurements of any of the other rooms on the third
floor, we estimate, applying Cohan v. Commissioner, 39 F.2d 540
(2d Cir. 1930), the space Mr. Cutts used on the third floor. Mr.
Cutts used 6 of the 10 rooms on the third floor. Because two of
those rooms were bathrooms that were much smaller than the other
rooms, we estimate Mr. Cutts used 47 percent of the third floor,
which constitutes roughly 1,645 square feet (.47 x 3,500).
Rounding up, we allocate 13 percent of the main house, carriage
house, and pool to Mr. Cutts for his personal use (1,645 square
Page: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 NextLast modified: May 25, 2011