Daniel L. Reeves - Page 8




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               Although after May 28, 1996, petitioner used the floating              
          structures approximately 10 times a year for personal purposes,             
          including the storage of his boat and jet skis, he paid $80,717             
          out of his own pocket to construct the floating structures.9                
          Consequently, his interest (approximately 30 percent) in the                
          structures allowed him a reasonable amount of personal use                  
          without conferring an economic gain or benefit upon him.  The               
          record does not indicate petitioner used the floating structures            
          in an unreasonable manner.                                                  
               Therefore, this Court finds petitioner did not receive an              
          economic gain or benefit from his personal use of the floating              
          structures.  Accordingly, petitioner did not receive a                      
          constructive dividend for the amounts VVI paid to construct the             
          floating structures.                                                        
               The Court, in reaching its holding, has considered all                 
          arguments made and concludes that any arguments not mentioned               
          above are moot, irrelevant, or without merit.                               
               To reflect the foregoing,                                              

                                             Decision will be entered                 
                                        for petitioner.                               



               9 Total cost of constructing the floating structures was               
          $266,044, of which VVI and petitioner paid approximately 70                 
          percent ($185,327) and 30 percent, respectively.                            







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