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steps to separate his real estate activity in 1992 from WFIC but
also acted as a sole proprietor in the 1992 transaction. These
facts indicate that WFIC was not the true earner of the 1992
commission. Petitioner has not met his burden of proving that he
did not earn the 1992 commission of $1,566.
In 1993, petitioner brokered one transaction for which a
commission of $28,000 was transferred from WFIC’s trust account
to its checking account and another transaction for which Epic
Real Estate received a commission of $102,080. The documents
related to this second transaction, including a commission check,
referred to Epic Real Estate as a division of WFIC. Petitioner
deposited the proceeds from the transaction into WFIC’s general
account. Likewise, in November 1993, petitioner brokered a
transaction for his sister in which Epic Real Estate received a
commission of $9,000. Petitioner also deposited this check into
WFIC’s general account. These amounts were reported on WFIC’s
corporate tax return for 1993. Petitioner changed the business
name with the NDREC back to “West Fargo Investment Corporation
d/b/a Epic Real Estate” on September 24, 1993, indicating his
intent to operate the real estate business through WFIC again.
We conclude that, for the purpose of the 1993 real estate
transactions, petitioner was again an employee of WFIC.
Petitioner has met his burden of proving that WFIC was the true
earner of the real estate commissions in 1993, and respondent has
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