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shareholder to a corporation for the purpose of protecting or
enhancing the shareholder’s investment in the corporation is a
nonbusiness debt. Deely v. Commissioner, supra at 1092. An
intention to sell stock of a company for profit is consistent
with the goals of an investor, and a taxpayer with such an
intention is not in the trade or business of dealing in
corporations unless his activities are so extensive and
continuous as to constitute a separate trade or business. See
Imel v. Commissioner, 61 T.C. 318, 323 (1973).
In Whipple v. Commissioner, 373 U.S. 193, 202 (1963), the
Supreme Court stated:
Devoting one’s time and energies to the
affairs of a corporation is not of itself,
and without more, a trade or business of the
person so engaged. Though such activities
may produce income, profit or gain in the
form of dividends or enhancement in the value
of an investment, this return is distinctive
to the process of investing and is generated
by the successful operation of the
corporation’s business as distinguished from
the trade or business of the taxpayer * * *
To be engaged in a trade or business of promoting business
entities, a taxpayer must seek compensation "other than the
normal investor’s return" and must conduct the activity for a fee
or commission or with the immediate purpose of selling of the
companies at a profit in the ordinary course of that business.
Deely v. Commissioner, supra at 1093. A taxpayer who seeks a
return from long-term investments rather than a quick sale after
the corporation becomes established is more likely to be viewed
as an investor rather than a business promoter. Id. at 1093-
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