David Cordero Basada - Page 3

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               Without detailing the source of income or the amount of time           
          he spent on each activity, petitioner explained that during the             
          years in issue he earned income from street hustling, pimping,              
          panhandling, and gambling.  We group these activities as "street-           
          hustling".                                                                  
               Section 1401 imposes a tax on a taxpayer's self-employment             
          income.  Self-employment income includes the net earnings from              
          self-employment derived by an individual during the taxable year.           
          Sec. 1402(b).  Net earnings from self-employment means gross                
          income derived by an individual from any trade or business                  
          carried on by such individual, less allowable deductions                    
          attributable to such trade or business, plus certain items not              
          relevant here.  Sec. 1402(a).  The term trade or business for               
          purposes of the self-employment tax generally has the same                  
          meaning it has for purposes of section 162.  Sec. 1402(c).                  
               To be engaged in a trade or business within the meaning of             
          section 1402(a), an individual must be involved in an activity              
          with continuity and regularity, and the primary purpose for                 
          engaging in the activity must be for income or profit.                      
          Commissioner v. Groetzinger, 480 U.S. 23, 35 (1987).  A sporadic            
          activity, a hobby, or an amusement diversion does not qualify.              
          Commissioner v. Groetzinger, supra at 35.  Whether an individual            
          is carrying on a trade or business requires an examination of the           
          facts involved in each case.  Higgins v. Commissioner, 312 U.S.             





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