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Bessenyey v. Commissioner, 45 T.C. 261, 274 (1965), affd. 379
F.2d 252 (2d Cir. 1967). This factor is neutral.
Respondent contends that the financial status factor favors
respondent because petitioner was employed full time. We
disagree. Petitioner earned wages of less than $50,000 per year
in 1995, 1996, and 1997. It does not appear that his aim was to
shelter income from tax. This factor favors petitioner.
Respondent contends that petitioner conducted his direct
marketing activity because he derived pleasure from it. We
disagree. We do not believe petitioner derived a significant
amount of personal pleasure from his direct marketing activity.
This factor favors petitioner.
We have previously decided whether various direct marketers
had profit objectives. For example, we held that the taxpayers
lacked a profit objective in Elliott v. Commissioner, 90 T.C.
960, 969-973 (1988), affd. without published opinion 899 F.2d 18
(9th Cir. 1990); Nissley v. Commissioner, T.C. Memo. 2000-178;
and Poast v. Commissioner, T.C. Memo. 1994-399. In those cases,
the taxpayers derived significant amounts of personal pleasure
from their Amway activities through hosting social gatherings in
their homes for prospective customers and attending conventions
and seminars for Amway representatives, thus using the marketing
activity to deduct personal travel expenses as business expenses.
See, e.g., Elliott v. Commissioner, supra (week in Hawaii);
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