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the way people shop”. However, for the year in issue, Mrs. Meyer
could not approximate how much time she spent on the Amway
activity, other than to state that “very little” time was devoted
to retail sales. Indeed, the record reflects that no sales were
made for a consecutive 8-month period. Mrs. Meyer’s time and
effort consisted of nothing more than engaging in the daily
activities of a homemaker and mother. Her testimony at trial
underscores this conclusion:
Q: Do you know how much time you spent a day or a
week during 1997 showing the plan?
* * * * * * *
A: Not much in the beginning because again, like I
said, I was out meeting people, getting to know someone to –
in order to show them the plan, * * * I went to a lot of
Bible studies. * * * I was attending Second Baptist Church,
and they had a lot of singles activities, and so I would go
to them.
I went to shopping in the mall. That’s places I could
take the kids. I would go to parks. I would go to –
basically I talked to people, and anywhere and any way that
I could get a name, something that I could find in common
with them to get back with them again later to try and
develop and build a friendship.
Fifth, section 1.183-2(b)(8), Income Tax Regs., provides
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
recreational elements involved.” Golanty v. Commissioner, supra
at 428-429; see Ransom v. Commissioner, T.C. Memo. 1990-381.
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