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See Gajewski v. Commissioner, 84 T.C. 980, 982 (1985); Johnston
v. Commissioner, 25 T.C. 106, 108 (1955).
Consistent with the manner in which petitioner reported the
income and expenses attributable to his gambling activity on his
Federal income tax return for the year in issue, petitioner
claims that his gambling activity constitutes a trade or
business. Respondent argues, in part, that petitioner’s gambling
activity does not constitute a trade or business because he did
not engage in that activity with the requisite intent to profit.
In general, section 162(a) allows a deduction for all
ordinary and necessary expenses paid or incurred during the
taxable year in carrying on a trade or business. The term “trade
or business” is not precisely defined in the Internal Revenue
Code or the regulations promulgated thereunder; however, it is
well established that in order for an activity to be considered a
taxpayer’s trade or business for purposes of section 162, the
activity must be conducted “with continuity and regularity” and
“the taxpayer’s primary purpose for engaging in the activity must
be for income or profit.” Commissioner v. Groetzinger, 480 U.S.
23, 35 (1987). It is clear that in a single taxable year, a
taxpayer may be in engaged in more than one trade or business.
Curphey v. Commissioner, 73 T.C. 766 (1980); Barrish v.
Commissioner, T.C. Memo. 1984-602.
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