William J. Fleischaker and Donni L. Fleischaker - Page 23

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               In this case, although petitioner devoted time and energy to            
          the affairs of Adult Living Centers, Whipple confirms that such              
          efforts of the taxpayer do not constitute a trade or business of             
          the taxpayer when there is no intention of developing the                    
          corporation as a going business for sale in the ordinary course.             
          Although a taxpayer’s activities on behalf of the corporation in             
          which he owns stock may create income or gain, the income or gain            
          is more closely related to the successful operation of the                   
          corporation’s business than that of the taxpayer.  See id.  A                
          taxpayer who actively engages in serving his own corporation for             
          the purpose of creating future income through the corporation is             
          not in a trade or business.  See id. at 202.                                 
               Petitioner’s activities in this case are qualitatively                  
          different from those of a taxpayer who develops and sells                    
          businesses for profit.  Developing and selling businesses for                
          profit is a trade or business.  However, the separate trade or               
          business of promoting businesses “must be conducted for a fee or             
          commission or with the immediate purpose of selling the                      
          corporations at a profit in the ordinary course of that                      
          business.”   Deely v. Commissioner, 73 T.C. 1081, 1093 (1980).               
          Buying and selling businesses for profit may constitute a trade              
          or business even though a promoter does not receive a fee,                   
          commission, or other “noninvestor” compensation.   The promoter,             
          however, “must show that the entities were organized with a view             

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