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Respondent's determinations are presumed correct, and petitioners
bear the burden of proving otherwise. Rule 142(a); Welch v.
Helvering, 290 U.S. 111, 115 (1933).
An examination of the entire record fails to reveal any
evidence linking the two undertakings. Petitioners' trees
produce apples from August through December, and petitioners
testified that they have no facility for cold storage of the
fruit, yet petitioner is able to practice dentistry all year
round. Furthermore, petitioner testified that only 10 or 15
percent of his patients actually take his apples, even when he
provides the apples to them for no cost. The evidence does not
support a conclusion that the apple orchard is necessary to
either his dental practice or his patients. Thus, we find no
degree of organizational or economic relationship between the two
undertakings. Moreover, we do not accept petitioner's testimony
that a business purpose is served by carrying on the apple
orchard activity and dentistry activity together as a single
activity, nor do we find any similarity between the two.
In light of the criteria stated in section 1.183-1(d),
Income Tax Regs., and considering the facts and circumstances of
the instant case, we find that petitioners' apple orchard
activity and dentistry activity are two separate and distinct
activities within the meaning of section 183 as determined by
respondent.
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