Randall B. and Kay F. Ollett - Page 14

                                       - 13 -                                         
          Golanty v. Commissioner, supra at 427; Nissley v. Commissioner,             
          T.C. Memo. 2000-178.  Seemingly, petitioners’ only plan to                  
          reverse the years of losses always was based on the premise that            
          their people and sales skills would improve and that they would             
          be able to persuade other downline distributors to join their               
          network.                                                                    
               Petitioners maintained their respective employments during             
          the years in issue.  Petitioners worked approximately 87 to 100             
          hours per week at their respective jobs, and spent only 15 to 20            
          hours per week on Amway.  From their employment, petitioners                
          reported wages of $96,389 in 1999 and $98,949 in 2000.                      
          Petitioners were able to use the losses from their Amway activity           
          to offset income earned from their employment.                              
               We believe petitioners received enjoyment from the Amway               
          activity, and we cannot overlook the personal and social aspects            
          of their trips for which they claimed significant travel                    
          expenses.  They regularly used Amway activities as a device to              
          deduct personal expenses as business expenses.  For example, on             
          two occasions, around March 26 and August 22, 1999, petitioners             
          drove to Champaign, Illinois, where their daughter was attending            
          the University of Illinois.  On the August 22 trip, petitioner              
          drove his daughter to school for the start of the fall semester.            
          He explained:  “The fact that I was going to use my business car            
          to transport [personal] effects down there meant I made sure that           






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  Next

Last modified: May 25, 2011