Paul G. Gubbini - Page 12

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          Rather, petitioner appears to have sought long-term returns from            
          his ownership interests, which is the hallmark of the investor.             
          Deely v. Commissioner, supra.  Although petitioner was actively             
          involved in the management of the apartment building, there is no           
          evidence he was directly compensated for his services.  Moreover,           
          it does not appear that he planned to sell the apartment building           
          once it became established; rather, he sold it as a result of his           
          divorce proceedings.                                                        
               Similarly, petitioner apparently sought a return from                  
          Cinevision in the form of enhanced value of his investment,                 
          rather than from direct compensation for his services to the                
          corporation.  Petitioner, moreover, reported the income or loss             
          connected with Cinevision as passive income or loss on his 1987             
          through 1989 returns.  Petitioner’s activities with respect to              
          Cinevision, which consisted of meetings with its management to              
          discuss its difficulties, appear no different from those of an              
          investor seeking to protect his investment.  As we discuss below,           
          we reach the same conclusion with respect to petitioner’s                   
          activities in connection with Color Trick.                                  
               The record is also devoid of evidence of other indicia of a            
          business of promoting corporations, such as the active seeking              
          out of opportunities to promote corporations, advertising, the              
          maintenance of a separate office or books of account for such a             
          business, or the preparation of statements of profit and loss               






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