Kenneth J. Nissley and Terri C. Connor Nissley - Page 17

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            stake in petitioners’ retail and downline sales.”); Ogden v.                               
            Commissioner, supra (“Amway distributors may be biased when                                
            discussing Amway because they have a natural desire to advance                             
            the organization and/or obtain income from a downliner.”).                                 
                  Petitioners have steadfastly refused to seek counsel from                            
            disinterested third parties, even though the advice they have                              
            received from interested Amway individuals has done nothing to                             
            reverse petitioners’ history of uninterrupted and substantial                              
            losses.  Furthermore, the record suggests that the “advice”                                
            petitioners received has consisted of little more than                                     
            platitudes, generalities, and encouragement to “stick with it”.                            
                  Also noteworthy is the fact that after her resignation from                          
            Administar Information Technologies in mid-1994, Mrs. Nissley was                          
            able to generate immediately a net profit as a self-employed                               
            business consultant, earning $23,193 based on gross receipts of                            
            $31,735 and total expenses of $8,542, for the last 6 months of                             
            1994.  By contrast, in their Amway activity, petitioners have                              
            incurred nothing but substantial losses for 8 consecutive years.                           
                  Third, section 1.183-2(b)(8), Income Tax Regs., provides in                          
            part that “Substantial income from sources other than the                                  
            activity (particularly if the losses from the activity generate                            
            substantial tax benefits) may indicate that the activity is not                            
            engaged in for profit especially if there are personal or                                  

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