- 14 -
applicable meaning of that term.8 Catalano v. Commissioner,
supra at 845; Stan Frisbie, Inc. v. Commissioner, supra; sec.
1.274-2(e)(2)(i), Income Tax Regs.; see also H. Conf. Rept.
95-1800, supra at 249, 1978-3 C.B. (Vol. 1) at 583 (for purposes
of section 274(a)(1)(B), the term “facilities” “[includes]
yachts, hunting lodges, fishing camps, swimming pools, tennis
courts, and bowling alleys * * * [and] may include airplanes,
automobiles, hotel suites, apartments, and houses (such as beach
cottages and ski lodges) located in recreational areas”).
The slightest use of a facility in connection with an
activity which is of a type generally considered to constitute
entertainment, amusement, or recreation operates under the text
of section 274(a)(1)(B) to disallow any deduction as to that
facility. See Ireland v. Commissioner, supra at 983; Harrigan
Lumber Co. v. Commissioner, 88 T.C. 1562, 1564-65 (1987), affd.
without published opinion 851 F.2d 362 (11th Cir. 1988); Catalano
v. Commissioner, T.C. Memo. 1998-447, affd. 240 F.3d 842 (9th
Cir. 2001); see also H. Conf. Rept. 95-1800, supra at 249, 1978-3
C.B. (Vol. 1) at 583. Whether an activity is of such a type is
8 Although Roach testified that in 1991 some associations
stopped calling a sailboat a “yacht” and that the Centurion is
therefore not actually a “yacht”, we apply the meaning of that
term as it is commonly understood to include “any of various
recreational watercraft * * * [such as] a sailboat used for
racing”. Merriam-Webster’s Collegiate Dictionary 1370 (10th ed.
1999).
Page: Previous 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 NextLast modified: May 25, 2011