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facts, we find that the prospect for profit in this case was too
remote and inconsequential to outweigh the immediate personal
nature of the activity. Thus, the primary motivation of
petitioner in participating in the motocross racing with his son
was personal, not for profit.
This factor favors respondent.
Having fully considered the above-enumerated factors and
taking into account all of the relevant facts and circumstances,
we reaffirm our previous holding in McCarthy I that petitioner in
1993 did not engage in managing Benjamin's motocross racing with
the intent to make a profit which is necessary to establish the
management activity as a trade or business within the intendment
of section 162(a). Cf. Commissioner v. Groetzinger, 480 U.S. 23,
35 (1987).
Additional Considerations
In its mandate remanding this case to the Court for further
consideration, the Court of Appeals instructed us, as follows:
In addition, the Tax Court should consider the
relevance to this matter, if any, of the "pre-opening
expense" doctrine. The "pre-opening expense" doctrine
requires that expenses incurred before a taxpayer
begins business operations be capitalized rather than
deducted in the year at issue. See, e.g., Sorrell v.
Commissioner, 882 F.2d 484, 486 (11th Cir. 1989);
Richmond Television Corp. v. United States, 345 F.2d
901, 905-07 (4th Cir.), vacated on other grounds, 382
U.S. 68 (1965) (per curiam). We ask for consideration
of this doctrine, or a determination that it is
irrelevant, because it was mentioned in the
Commissioner's brief on this appeal. See Appellee's
Br. at 26 n.7.
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