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Claimed Schedule C PDA Consulting Business Expenses
In order for a taxpayer to be carrying on a trade or busi-
ness within the meaning of section 162(a), the taxpayer must be
involved in the activity with continuity and regularity. Commis-
sioner v. Groetzinger, 480 U.S. 23, 35 (1987). A sporadic
activity will not qualify as carrying on a trade or business for
purposes of section 162(a). Id. In addition, the taxpayer’s
primary purpose for carrying on the activity must be for income
or profit. Id.
Petitioner contends that during the year at issue he con-
tacted or made presentations to at least four companies regarding
PDA consulting services that he hoped to sell to those companies.
As a result, petitioner argues, he was carrying on a PDA consult-
ing business during the year at issue and is entitled to deduct
certain amounts that he paid during that year in doing so.
Respondent disagrees.
We have found that on April 4, 2001, petitioner sent an e-
mail to the chief executive officer of Handspring, a manufacturer
of PDAs, in which he renewed the offer that he had made in two e-
mails addressed to her on December 20, 2000, to develop, market,
and sell business applications of Handspring’s PDA. On the
record before us, we find that petitioner has failed to carry his
14(...continued)
(3), and (4), Temporary Income Tax Regs., 50 Fed. Reg. 46014-
46016 (Nov. 6, 1985).
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