Paul G. Gubbini - Page 14

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          expected or was entitled to any direct compensation for his                 
          services.  Although petitioner contended that he did not do so              
          because of Color Trick’s financial problems, there is no evidence           
          that he was owed any salary for his services or that he deferred            
          collecting any salary due him.  We conclude from the record as a            
          whole that petitioner expected only an investor’s return from               
          Color Trick in the form of dividends or long-term enhanced value            
          of his shareholdings.                                                       
               It does not appear that petitioner planned to sell Color               
          Trick quickly once it became established.  Indeed, there is some            
          question whether the business could have been sold, because                 
          Leland Prentice was allowed to use his process in only two                  
          locations but was not allowed to market it.  Rather, an effort              
          was made to sell the business only after petitioner decided that            
          it would not be successful and that he could not continue                   
          financing it.                                                               
               Petitioner also contends that he made advances to Color                
          Trick in order to protect his business reputation after he had              
          induced other physicians in the medical group to invest in Color            
          Trick.3  As noted above, we cannot conclude from the record in              
          the instant case that petitioner had a reputation as a business             

          3                                                                           
               Petitioner does not contend that the investments in Color              
          Trick by other physicians with whom he practiced rendered his               
          advances to Color Trick proximately related to his medical                  
          practice, or that his medical practice would be in any way                  
          affected by the fate of Color Trick.                                        




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