- 21 - 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).Page: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Next
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