EXPENSES-MEDICAL-Continued
tions by ad hoc committee of residents, petitioners increased portion
of monthly service fees attributable to medical care and included
deductions for use of pool, spa, and exercise facilities; after audit,
Commissioner issued deficiency notice determining deficiencies
using facility's calculations and disallowing deductions for use of
pool, spa, and exercise facilities; and Commissioner subsequently
contended deductible portions of monthly service fees should be cal-
culated by actuarial method instead of percentage method, Court
determined (1) under sec. 7491(a), Commissioner bore burden of
proof for factual issue of portions of monthly service fees allocable
to medical care, since Commissioner conceded petitioners had
submitted credible evidence for purposes of sec. 7491(a)(1), but
Commissioner did not have burden of proof as to deductions for use
of pool, spa, and exercise facilities, since petitioners did not submit
credible evidence; and (2) petitioners were not required to use
actuarial method to determine portions of monthly service fees
allocable to medical care, since Commissioner's longstanding prac-
tice sanctioned use of percentage method, but petitioners were not
entitled to additional deductions for use of pool, spa, and exercise
facilities. Baker v. Commissioner.