James R. and Janet M. Landrum - Page 16

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          enthusiasm of these weekends but was not willing explicitly to              
          classify them as pleasure.  Sometimes petitioners went                      
          separately, partly because of his work schedule and partly                  
          because they were separated during some portion of the years in             
          issue.  Petitioners’ expenditure of substantial funds and                   
          attendance at numerous Amway conventions and seminars, near and             
          far, even though their financial return from Amway was nil, and             
          had been minimal during many years of Amway experience, suggests            
          an element of pleasure or recreation in the participation.  See             
          Nissley v. Commissioner, supra, where we commented about this               
          aspect of the Amway organization as follows: “The record suggests           
          that petitioners enjoy the same congenial sense of family and the           
          same gratifying motivational feeling from participating in their            
          Amway activity as do many other individuals who remain committed            
          to Amway.”                                                                  
               Based upon the objective facts and the totality of the                 
          circumstances, petitioners’ contention that their Amway activity            
          was engaged in for profit is unsupportable.  They had extensive             
          experience with Amway.  By the years in issue they knew or surely           
          should have known that they were not going to make money at                 
          Amway.  They benefited to some extent by deducting automobile and           
          legal and other necessary expenditures that otherwise would be              
          nondeductible, and they participated in the excitement of the               

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