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petitioners had a second home there, while petitioners stated
that the Aspen trips were to visit their flagship Carole Little
store to deliver or collect merchandise, check on merchandise or
store appearance, and discuss CFI matters with the store staff.
In any case, petitioners paid BHJ from their personal account for
the occasional personal trips they took on the Falcon, and CFI
paid for the trips characterized as having a business purpose.
Petitioners also often used Ms. Harrah’s jet for personal
travel when the Falcon was on charter or otherwise unavailable to
them. CFI was the primary customer of the jet charter activity,
and petitioners both testified credibly as to the business
purpose and nature of the CFI trips.
We are not convinced that either petitioner was an airplane
hobbyist or particularly enjoyed air travel, but we do recognize
that petitioners derived some benefit from the ability to use a
private jet occasionally for personal purposes. We find
petitioners’ use of the Falcon and the jet charter activity to be
primarily motivated by the needs of their CFI business. This
factor supports a conclusion that petitioners engaged in the jet
charter activity for profit.
10. Conclusion
Mr. Rabinowitz testified that petitioners thought they could
enter the jet charter business, do it better than other charter
companies, and make money while doing it. Petitioners used their
considerable business skills to attempt to make the business
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