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the taxpayer’s businesslike conduct of his investment activities,
the Supreme Court held that he was a mere investor, and his
activity did not constitute a trade or business. Higgins v.
Commissioner, 312 U.S. at 217.
On the basis of the facts and circumstances of the present
case, we find that petitioner’s trading activities were not
regular, continuous, and frequent enough for him to be considered
a trader during taxable year 2000. Therefore, petitioner was an
investor, not a trader. As such, he was not conducting a trade
or business. Commissioner v. Groetzinger, 480 U.S. at 30;
Whipple v. Commissioner, supra at 202; King v. Commissioner, 89
T.C. 445, 459 (1987); Paoli v. Commissioner, supra.
2. Net Operating Loss
Because petitioner is not in a trade or business of trading
securities, he is not entitled to any net operating loss of such
nonexistent business.
Furthermore, as of the time of trial, respondent had not
accepted petitioner’s 1999 Form 1040, U.S. Individual Income Tax
Return, as a valid return. Therefore, any carryover losses
claimed by petitioner, whether NOL losses or capital carryover
losses, have not been proven by petitioner. Thus, any such
losses cannot be deducted by petitioner for taxable year 2000.
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