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Commissioner, 72 T.C. 28, 34 (1979); sec. 1.183-2(b), Income Tax
Regs.
We do not believe in the case before us it is necessary to
analyze each of the factors enumerated in section 1.183-2(b),
Income Tax Regs. Rather, we shall focus only on those we believe
most important. Our analysis leads us to conclude that
petitioner’s Packs to Go activity does not rise to the level of a
trade or business as that term is used in section 162.
Petitioner did not have any gross receipts (much less make
any profit) from her Packs to Go activity in 2001, 2002, or 2003.
Nor does the record indicate that Packs to Go owned tangible
assets or even possessed a bank account at any time. The
following colloquy between Special Trial Judge Powell and
petitioner during the trial indicates that Special Trial Judge
Powell had difficulty accepting petitioner’s assertion that Packs
to Go was operated with the requisite “actual and honest objective
of making a profit”:
The Court: And I’m not exactly sure I understand right now
after listening for almost three hours what your business is.
Ms. Jackson: Your Honor, my business is a-–and again it’s
two-fold. It’s the practical side of packing boxes because I
see this every day for Federal Express, and this was one-–as
a driver, when we get a call to come to--
The Court: But if you did that, you would have some income.
Ms. Jackson: I would have income if people paid me, and if--
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