- 6 - 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 debtPage: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011