- 47 - Petitioner claims he canceled the debt because he thought the $9,000 commission was “inappropriate”. Because petitioner was an agent of WFIC, his unilateral decision to effectively reduce WFIC’s commission by $7,000 without an adequate explanation shows that the $7,000 was in substance compensation from WFIC to petitioner, who then gave it as a gift to his sister. Consequently, the $7,000 is compensation includable in petitioner’s 1993 income. In October 1993, petitioner paid for the Buick with WFIC’s funds. Respondent includes the price of the car in petitioner’s income in the notice of deficiency. Petitioner claims that the car was purchased for WFIC’s business use and that a mileage log was kept for business purposes. He also claims that Mary reported compensation income on her 1993 and 1994 personal tax returns and received Forms W-2 in 1993 and 1994 for her use of the Buick. Petitioner did not produce either Mary’s 1993 tax returns or Forms W-2 or her 1994 Forms W-2 or tax returns. The purported mileage log of automobile use for 1993 is in the record. First, we do not find the mileage log to be a credible representation of petitioner’s and Mary’s use of the Buick. The mileage log includes entries for the months of July, November, and December 1993, but the Buick was not purchased until October 15, 1993, according to the purchase contract. In addition, the mileage logPage: Previous 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 Next
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