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98 Schedules C reporting zero gross receipts from A.S.K.
Enterprises support a finding that he was not engaged in any
trade or business during that period.
Assuming arguendo that petitioner made efforts to engage in
a trade or business during the 1996-98 period and he held (and
incurred expenses with respect to) his investment properties
(and, in particular, the Bethlehem property) in connection with
those efforts, such activities do not amount to “carrying on any
trade or business” within the meaning of section 162(a). See
Richmond Television Corp. v. United States, 345 F.2d 901, 907
(4th Cir. 1965), vacated and remanded on other issues 382 U.S. 68
(1965):
The uniform teaching of these several cases is
that, even though a taxpayer has made a firm decision
to enter into business and over a considerable period
of time spent money in preparation for entering that
business, he still has not “engaged in carrying on any
trade or business” within the intendment of section
162(a) until such time as the business has begun to
function as a going concern and performed those
activities for which it was organized. [Fn. ref.
omitted.]
Accord Hardy v. Commissioner, 93 T.C. 684, 687 (1989); Goodwin v.
Commissioner, 75 T.C. 424, 433 (1980), affd. without published
opinion 691 F.2d 490 (3d Cir. 1982); Madison Gas & Elec. Co. v.
Commissioner, 72 T.C. 521, 566-567 (1979), affd. 633 F.2d 512
(7th Cir. 1980).
On brief, petitioner attempts to flesh out his trial
testimony by describing in great detail his efforts, beginning in
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