Basavaraj A. Hooli and Vindodini B. Hooli - Page 10




                                        - 9 -                                         
          resulting in net losses.  Based upon this record, we do not find            
          petitioner’s 1990 and 1991 Federal income tax returns convincing            
          evidence that petitioner’s import/export activity constituted an            
          active trade or business.                                                   
               Petitioner has convinced us that he wanted to enter the                
          import/export business during the years in issue.  He had at                
          least one plan, and he tried to get a start.  But his own                   
          evidence convinces us that he never bought, manufactured, or sold           
          a product or otherwise was able to get his plan into operation.             
               We hold that petitioners are not entitled to claimed                   
          deductions for Schedule C expenses for 1992 and 1993.                       
               Reviewed and adopted as the report of the Small Tax Case               
          Division.                                                                   
               To reflect the foregoing,                                              
                                                  Decision will be entered            
                                             for respondent.                          




















Page:  Previous  1  2  3  4  5  6  7  8  9  10  

Last modified: May 25, 2011