- 36 -
In the instant case, we have held, supra p. 26, that
petitioner’s unrelated trade or business for purposes of section
513 was soliciting, selling, and publishing advertising space.
The advertising business is an income-producing activity "of a
kind normally conducted by nonexempt commercial organizations on
a year-round basis". Sec. 1.513-1(c)(2)(i), Income Tax Regs. In
deciding whether petitioner’s business was "regularly carried on"
within the meaning of section 512 and the regulations thereunder,
we examine all activities of petitioner's advertising "trade or
business", which include soliciting, selling, and publishing
commercial advertising. United States v. American College of
Physicians, supra at 839 (citing sec. 1.513-1(b), Income Tax
Regs.).
We have concluded, supra pp. 30-31, that the activities of
BWE and McKnight and their subcontractors are to be attributed to
petitioner for purposes of determining whether petitioner's
business was "regularly carried on". Through those entities,
petitioner conducted a solicitation program 8 hours a day for
approximately 46 weeks a year. Petitioner distributed The
Constabulary once each year at the State Police Chase, hand-
carried approximately 1,000 copies to troopers' barracks over the
span of a couple of weeks, and delivered the remaining copies to
businesses. We conclude that such activities are sufficiently
frequent and continuous to be characterized as "regularly carried
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