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Cir. 1989), affg. 92 T.C. 180 (1989). The determination of
whether petitioner’s securities activities during the year in
issue constituted a trade or business is a question of fact.
Higgins v. Commissioner, 312 U.S. 212, 217 (1941); Estate of
Yaeger v. Commissioner, supra at 33; Paoli v. Commissioner, T.C.
Memo. 1991-351.
“In determining whether a taxpayer in a securities activity
is engaged in a trade or business, courts have distinguished
between ‘traders’, who are in a trade or business, and
‘investors’, who are not.” Mayer v. Commissioner, T.C. Memo.
1994-209 (and the cases cited therein.) Managing security
investments, no matter what the extent or scope of such activity,
is seen as the work of a mere investor, “not the trade or
business of a trader.” Estate of Yaeger v. Commissioner, supra
at 34; see also Whipple v. Commissioner, 373 U.S. 193, 202
(1963); Higgins v. Commissioner, supra at 217; Paoli v.
Commissioner, supra; Beals v. Commissioner, T.C. Memo. 1987-171.
The outcome is the same notwithstanding the amount of time the
individual devotes to the activity. Even “full-time market
activity in managing and preserving one’s own estate is not
embraced within the phrase ‘carrying on a business’ and * * *
salaries and other expenses incident to the operation are not
deductible as having been paid or incurred in a trade or
business.” Commissioner v. Groetzinger, supra at 30. However,
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