Keith Robert Bradbury - Page 6

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          Moreover, deductions are strictly a matter of legislative grace,            
          and a taxpayer has the burden of establishing that he or she is             
          entitled to any deduction claimed on a return.  Deputy v. du                
          Pont, 308 U.S. 488, 493 (1940); New Colonial Ice Co. v.                     
          Helvering, 292 U.S. 435, 440 (1934).                                        
               Section 162(a) allows as a deduction "all the ordinary and             
          necessary expenses paid or incurred during the taxable year in              
          carrying on any trade or business".  Where a taxpayer conducts an           
          activity not as a trade or business, section 183 allows                     
          deductions generally to the extent that the activity generates              
          gross income.  To be engaged in a trade or business within the              
          meaning of section 162, "the taxpayer must be involved in the               
          activity with continuity and regularity and * * * the taxpayer's            
          primary purpose for engaging in the activity must be for income             
          or profit."  Commissioner v. Groetzinger, 480 U.S. 23, 35 (1987).           
               Whether petitioner is engaged in business and real estate              
          brokerage for profit depends on whether the activities were                 
          undertaken with an "actual and honest objective" of making a                
          profit.  Elliott v. Commissioner, 90 T.C. 960, 970 (1988), affd.            
          without published opinion 899 F.2d 18 (9th Cir. 1990); Fuchs v.             
          Commissioner, 83 T.C. 79, 98 (1984); Dreicer v. Commissioner, 78            
          T.C. 642, 644-645 (1982), affd. without opinion 702 F.2d 1205               
          (D.C. Cir. 1983).  While a reasonable expectation of a profit is            
          not required, petitioner must have entered into the activity, or            
          continued it, with the bona fide objective of making a profit, as           




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