Elliott v. Commissioner
United States Tax Court
Ps conducted an Amway distributorship in the evenings and on weekends during the years in issue. They claimed deductions for various business expenses which were allegedly necessary to the Amway distributorship. Ps submitted records to support their claimed deductions consisting of a notebook with incomplete entries and many unannotated receipts. Ps conducted the Amway distributorship in an unbusinesslike fashion.
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Ps conducted an Amway distributorship in the evenings and on weekends during the years in issue. They claimed deductions for various business expenses which were allegedly necessary to the Amway distributorship. Ps submitted records to support their claimed deductions consisting of a notebook with incomplete entries and many unannotated receipts. Ps conducted the Amway distributorship in an unbusinesslike fashion. Held, Ps failed to show that they engaged in the Amway distributorship with the actual and honest objective of making a profit, and, therefore, Ps improperly claimed deductions for…
1Opinion of the Court
WRIGHT, Judge:
By a notice of deficiency dated January 24, 1985, respondent determined a deficiency of $7,825 in petitioner’s 1981 Federal income taxes and additions to tax in the amounts of $590, $671, and 50 percent of the statutory interest due on $7,825 under sections 6651(a)(1), 6653(a)(1), and 6653(a)(2), respectively.
After concessions, the issues for our consideration are (1) whether petitioners’ activities in 1981 with regard to an Amway distributorship constitute an activity engaged in for profit within the meaning of section 183,1 and, if so, what amount, if any, are petitioners…
2Cases cited19 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Neely v. CommissionerUnited States Tax Court · 1985
- Knetsch v. United StatesSupreme Court of the United States · 1960
- Dreicer v. CommissionerUnited States Tax Court · 1982
- Golanty v. CommissionerUnited States Tax Court · 1979
14 more not listed; retrieve them via the Exa API.
3Cited by49 opinions
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- Kerman v. Comm'rUnited States Tax Court · 2011
- Furman v. CommissionerUnited States Tax Court · 1998
44 more not listed; retrieve them via the Exa API.