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sec. 1.183-2(a) and (b), Income Tax Regs. No single factor is
controlling, nor is the existence of a majority of factors
favoring or disfavoring a profit objective necessarily
controlling. Hendricks v. Commissioner, 32 F.3d 94, 98 (4th Cir.
1994), affg. T.C. Memo. 1993-396; sec. 1.183-2(b), Income Tax
Regs.
The parties stipulated that the following documents were
made available to respondent:
A Franklin Planner detailing (i) all the times the Ogdens
showed the Amway Sales and Marketing Plan, the travel
related thereto and expenses associated therewith; (ii)
records of phone calls relating to Petitioners' Amway
enterprise; (iii) meetings with "upline" and "downline"
sponsors and prospects; and (iv) extensive notes taken at
Amway meetings and functions; detailed records of all Amway
products ordered through the Ogden's Amway organization; all
receipts for meals, travel, training and seminars, and other
expenses related thereto; detailed business telephone and
voicemail charges; detailed cellular phone charges;
commercial bank account records for Ogden Enterprises;
detailed long distance phone records; detailed pager
expenses for 1995; and detailed postage expenses records.
We found it difficult to analyze or date some of the
documents placed in evidence because many of them were
photocopies of handwritten papers. Petitioners did not maintain
a budget in an attempt to reduce costs. We were not impressed
with their handwritten, scribbled so-called projections.
Petitioners apparently followed the generalized business
plan published by Amway. Petitioners tried different marketing
techniques, such as fliers and telemarketing, to increase their
retail sales. Although petitioners' gross income from Amway
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