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Nissley v. Commissioner, supra (trips to New York, Denver,
Atlanta, Orlando, and Minneapolis); Poast v. Commissioner, supra
(repeated trips to the Indianapolis Speedway, and trips to
Washington, D.C., California, Texas, and Michigan).1
Petitioner did not use his marketing activity to deduct personal
travel expenses. The taxpayers in Nissley said they would
continue selling Amway products whether or not they were
financially successful. Here, as discussed above, petitioner
changed companies and abandoned unsuccessful sales methods.
Respondent does not contend that this case is like the Amway
cases.
In view of the time and effort petitioner spent on his
marketing activity, the startup nature of the activity, and his
changes in operations and abandonment of unprofitable methods, we
find that petitioner operated his direct marketing activity for
profit in 1997.2
1 The Commissioner conceded that the taxpayer in Brennan v.
Commissioner, T.C. Memo. 1997-60, engaged in an Amway sales
activity for profit.
2 Respondent’s counsel stated at trial that petitioner
“probably intended to make a profit” from 1995 to 1997 as an
outside sales representative for direct marketing companies.
However, we have decided this issue on the record, not on the
basis of respondent’s counsel’s statement at trial.
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