Joe Guadagno and Susan Beth Rishel Guadagno - Page 14

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          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                    

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