- 13 - distances from petitioners. Such behavior suggests the absence of a profit objective. See Bessenyey v. Commissioner, supra. Although petitioners maintained detailed records for certain aspects of their distributorship, the records apparently were kept more for substantiation purposes than for use as analytical business tools. See Theisen v. Commissioner, T.C. Memo. 1997- 539; Hart v. Commissioner, T.C. Memo. 1995-55; Poast v. Commissioner, T.C. Memo. 1994-399. In closing, we note that even if petitioners had maintained their monthly point value goal of 4,000, their expenses would still have exceeded their income from performance bonuses and retail sales. We are satisfied that petitioners’ primary purpose for engaging in the sale and distribution of Amway products was not for income or profit. After consideration of all of the facts and circumstances, we find that petitioners’ Amway distributorship does not fit within “a common-sense concept of what is a trade or business.” Commissioner v. Groetzinger, 480 U.S. at 35. Therefore, petitioners are not entitled to the deductions here in dispute, and respondent’s determination in this regard is sustained. Reviewed and adopted as the report of the Small Tax Division.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
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