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of the net earnings from a trade or business carried on by an
individual. See sec. 1402(a) and (b). An individual is engaged
in a trade or business if such individual's activities are
conducted with continuity and regularity, and primarily for
income or profit. See sec. 1402(c) (stating that the term "trade
or business" for the purposes of self-employment income generally
has the same meaning as it does for the purposes of section 162);
Commissioner v. Groetzinger, 480 U.S. 23, 35 (1987).
Petitioner was not engaged in the trade or business of
inventing. He did not develop or design inventions on a
continuous or regular basis. Petitioner testified:
I could sit here in front of you all for the next year
and I might not even think of an invention, never even
come to my mind. All of a sudden, I'll get two more
[ideas] in a stroke of genius, they say, but it's
really not a stroke of genius, it's just luck.
Indeed, petitioner conducted his activities sporadically.
Accordingly, the settlement awards and royalties petitioner
received in 1993 and 1994 are not subject to self-employment tax.
Respondent determined that petitioner is not entitled to
deductions for the following: (1) $155 of automobile expenses
relating to 1993; (2) $565 and $1,130 of depreciation relating to
1993 and 1994, respectively; (3) $738 and $519 of utility
expenses relating to 1993 and 1994, respectively; and (4) $7,406
and $3,401 of miscellaneous expenses relating to 1993 and 1994,
respectively. Petitioner bears the burden of proof, yet has
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