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Court has consistently given this definition of gross income a
liberal construction “in recognition of the intention of Congress
to tax all gains except those specifically exempted.”
Commissioner v. Glenshaw Glass Co., 348 U.S. 426, 430 (1955); see
also Roemer v. Commissioner, 716 F.2d 693, 696 (9th Cir. 1983),
(all realized accessions to wealth are presumed taxable income,
unless the taxpayer can demonstrate that an acquisition is
specifically exempted from taxation), revg. 79 T.C. 398 (1982).
However, pursuant to section 162, a taxpayer may deduct
ordinary and necessary expenses paid or incurred during the
taxable year in carrying on his or her trade or business. A
taxpayer is engaged in a trade or business if the taxpayer is
involved in the activity (1) with continuity and regularity, and
(2) with the primary purpose of making a profit. Commissioner v.
Groetzinger, 480 U.S. 23, 35 (1987); Antonides v. Commissioner,
893 F.2d 656, 659 (4th Cir. 1990), affg. 91 T.C. 686 (1988).
Petitioner has the burden of proving that he was engaged in
a trade or business and, as stated previously, that the deposits
made to his account, checks cashed, and checks written on his
account, were not includable in his 2000 income as determined by
respondent. Rule 142(a); INDOPCO, Inc. v. Commissioner, 503 U.S.
79, 84 (1992); New Colonial Ice Co. v. Helvering, 292 U.S. 435,
440 (1934); Welch v. Helvering, supra.
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