- 10 - 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 inPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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