- 10 - F. Petitioners’ Reconciliation and the Termination of the Amway Activity By November 1997, petitioners had reconciled, and the divorce action was nonsuited. Subsequently, at some point in 1998, petitioners decided that they would no longer actively pursue the Amway activity. Since that time, however, Mrs. Meyer has continued to renew her status as an Amway distributor in order to retain the right to purchase Amway products, such as vitamins and cleaning products, for petitioners’ personal use at discount prices. G. Petitioners’ Schedule C Losses For all relevant years, specifically including the taxable years 1994 through 1998, petitioners filed joint Federal income tax returns. Petitioners attached to each of those returns a Schedule C, Income or Loss From Business, identifying “Karl L. Meyer” as “proprietor” of “Meyer Enterprises” and describing the principal business or service of such enterprise as “Distribution”. Petitioners have never reported a profit from the Amway activity. Rather, petitioners have consistently claimed losses from this activity and have used such losses to offset Mr. Meyer’s compensation as a salesman. The following schedule reflects the losses claimed by petitioners from the Amway activity on Schedules C of their tax returns for 1994 through 1998:Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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