- 12 -
account. To the extent that the ownership of assets used in
connection with the carrying on of a trade or business is, in
general, indicative of ownership, the record in this case, simply
put, provides no useful guidance on the point.
Lastly, we consider which individuals provided labor in
connection with the business and the extent of that labor. In
this regard we note that Malone Music had no employees during the
years in issue. As we view the matter, although not
determinative in a general sense, in a labor-intensive business
with no employees, there is strong suggestion that the
individuals performing the labor own the business. In this case
the record overwhelmingly demonstrates that the business was
carried on through the labor of H, R, and other of the Malone
children. This is true not only with respect to the services and
programs offered by Malone Music, but with respect to internal
activities as well, such as planning and record keeping.
Petitioner describes his labor contribution to the business as
“administrative”. We view it more in the nature of parental.
The fact that one or more of the Malone children, rather than
petitioner or petitioners, supplied the necessary labor to carry
on the business during the years in issue, strongly supports a
finding that the business belonged to one or more of the
children, not to petitioner.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011