- 50 -
The testimony pertaining to Landmark Jewelers was similar in
that Mr. Deihl indicated that purchases were made at the jewelry
store for both promotional rewards and “actual gifts”. He
further stated that he did not “recall” making any personal
purchase at Landmark Jewelers during the years in issue, although
Mrs. Deihl admitted that personal items had been bought at
Landmark Jewelers in earlier years. Likewise, Mr. Deihl
testified to having purchased at Saba’s “little cowboy boot
trinkets” to give away to convention participants. However, he
also conceded that he made personal clothing purchases at Saba’s
as well.
Hence, as to each of the foregoing establishments, the
record supports that purchases falling into more than one of the
various categories that affect deductibility, i.e., compensatory
awards, business gifts, and personal items, were made. Some
charges are therefore potentially allowable under section 162
alone, others are limited by section 274, and still others are
nondeductible under section 262. Yet the record is insufficient
for the Court to differentiate and separate the actual charges
claimed into the appropriate categories. Petitioners generally
chose not to offer item-by-item explanations,11 and with the
11 In one instance, Mr. Deihl was questioned at trial about
a particular invoice item from Landmark Jewelers, namely, a
$13,900 sapphire, diamond, and platinum ring. His response was:
“Sapphire is one of the achievement levels that we have in the
(continued...)
Page: Previous 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 NextLast modified: May 25, 2011