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Respondent determined a deficiency in petitioners’ Federal
income tax for the taxable year 1997 in the amount of $3,612.
After a concession by respondent,2 the sole issue for
decision is whether petitioners engaged in an Amway activity for
profit within the meaning of section 183.
Background3
Some of the facts have been stipulated, and they are so
found.
Petitioners are husband and wife and have been married since
1992. They resided in Houston, Texas, at the time that their
petition was filed with the Court.
A. Petitioner Husband
Petitioner husband (Mr. Meyer) is, by profession, a salesman
of medical equipment and has been employed by Xomed, Inc. (Xomed)
for approximately 15 years. Xomed specializes in the production
of medical equipment for use by health care providers who
practice in the ear, nose, and throat area. As a salesman for
Xomed, Mr. Meyer typically contacts doctors and nurses within an
2 At trial, respondent conceded that petitioners are
entitled to the Schedule A, Itemized Deductions, deduction for
unreimbursed employee business expenses (incurred by petitioner
Karl Meyer in the course of his employment as a salesman for
Xomed, Inc.) as claimed by petitioners on their return for the
year in issue.
3 At trial, we deferred ruling on respondent’s relevancy
objection to petitioners’ Exhibit 23-P, a collection of business
articles. We now overrule that objection and admit the exhibit
into evidence.
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