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503 U.S. 79, 84 (1992). Taxpayers are allowed a deduction for
ordinary and necessary expenses paid or incurred in carrying on a
trade or business. Sec. 162(a). The Supreme Court has stated
that "to be engaged in a trade or business, the taxpayer must be
involved in the activity with continuity and regularity and that
the taxpayer's primary purpose for engaging in the activity must
be for income or profit. A sporadic activity, a hobby, or an
amusement diversion does not qualify." Commissioner v.
Groetzinger, 480 U.S. 23, 35 (1987). Whether a taxpayer is in a
trade or business requires an examination of the facts and
circumstances of each case. Higgins v. Commissioner, 312 U.S.
212, 217 (1941); see also Commissioner v. Groetzinger, supra at
36. A taxpayer may engage in more than one trade or business at
the same time. Snyder v. Commissioner, 295 U.S. 134, 138-139
(1935); Gestrich v. Commissioner, 74 T.C. 525, 529 (1980), affd.
without published opinion 681 F.2d 805 (3d Cir. 1982).
A taxpayer who engaged in only one venture can be found to
be in a trade or business. See Morley v. Commissioner, 87 T.C.
1206, 1211 (1986); S & H, Inc. v. Commissioner, 78 T.C. 234, 244
(1982). These two cases, however, are distinguishable from the
case at bar.
In S & H, Inc. v. Commissioner, supra, the taxpayer's
primary business was acquiring improved real property and either
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