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carried on by the individual, less allowable deductions
attributable to the 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). Thus,
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 and profit.
Commissioner v. Groetzinger, 480 U.S. 23 (1987). Whether an
individual is carrying on a trade or business requires an
examination of all the facts in each case. Higgins v.
Commissioner, 312 U.S. 212, 217 (1941). These provisions are to
be broadly construed to favor treatment of income as earnings
from self-employment. Hornaday v. Commissioner, 81 T.C. 830, 834
(1983).
As stated earlier, petitioners filed amended returns
reflecting income from "side work". The income from this "side
work" was earned by petitioner for work he performed as a self-
employed painter and drywaller. Those amounts are subject to
self-employment tax. Respondent argues that petitioners'
additional unreported income is also subject to self-employment
tax. Petitioners addressed this issue indirectly at trial when
they claimed all of their bank deposits were nontaxable. We have
resolved above that only certain deposits are nontaxable.
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