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Relying on Commissioner v. Groetzinger, 480 U.S. 23 (1987),
petitioners argue that petitioner was in the trade or business of
making loans because he made loans to Aaland on a regular basis
and his primary purpose was to make money. In Groetzinger, the
Supreme Court held that a gambler who spent 6 days a week at a
race track for 48 weeks a year, and 60 to 80 hours a week on
gambling-related activities, such as studying racing forms and
programs, to the exclusion of all other employment, was engaged
in the trade or business of gambling.
Petitioner's occasional advances to Aaland, though occurring
over a long period of time, are not comparable to the full-time
gambling activity described in Commissioner v. Groetzinger,
supra. When he first made the advances to Aaland and until he
retired some years later, petitioner made his living as a farmer.
Petitioner does not contend that he ever had any money-lending
activities apart from his dealings with Aaland and the
corporations.
Moreover, the circumstances of petitioner’s alleged money-
lending activities do not bespeak a business. Although prior
advances to Aaland remained undischarged, petitioner continued
for years to make additional advances to him and his ventures
exclusively. During this same period, petitioner borrowed
significant sums from Aaland, rather than trying to collect the
amounts Aaland owed him. The record is devoid of evidence that
petitioner ever took any action, apart from entering into debt
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