- 34 -
competitive or promotional efforts typical of commercial
endeavors.
We conclude that the facts of Suffolk County and NCAA are
distinguishable from those of the instant case. In Suffolk
County, although a large percentage of the organization's annual
vaudeville shows' gross receipts derived from the sale of
advertising for the shows' program guides, we defined the
taxpayer's trade or business for purposes of section 513 as the
annual vaudeville shows.6 Suffolk County antedated United States
v. American College of Physicians, 475 U.S. 834 (1986). In
Suffolk County, we did not segregate the business of the annual
vaudeville shows from the publishing of the shows' program
guides, nor did we segregate the publishing of material relating
to the shows from the business of selling and publishing
advertising space in the program guides. Accordingly, we
conclude that Suffolk County is not dispositive of the instant
case.
In NCAA, the Tenth Circuit Court of Appeals defined the
taxpayer's trade or business for purposes of section 513 as "the
6 See Suffolk County Patrolmen’s Association v. Commissioner,
77 T.C. 1314, 1319 (1981) ("Although petitioner does dispute that
the annual vaudeville show constituted a trade or business, its
primary argument herein is that even if the show was a trade or
business it was not 'regularly carried on.'"); id. at 1322 n.10
("Respondent maintains, and we agree, that the actual performance
of the vaudeville show and the solicitation of advertising for
the program guide are a single inseparable activity.").
Page: Previous 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 NextLast modified: May 25, 2011