The next requirement of section 162(a) is that the taxpayer must be carrying on a trade or business. Start up expenses are not entirely deductible, but must be spread out over 15 years. Because business expenses are fully deductible under section 162, taxpayers try to argue that expenses were not start up expenses. The Second Circuit Court of Appeals found that the Tax Court should look at if employment of the taxpayer is in the same trade or business to determine if it is a start-up expense, or a carrying on expense. If there is a substantial difference between the activities of the occupations of the taxpayer, then they are considered to be separate trades or businesses, and the expenses for the new trade or business activity are not deductible under 162(a). Trade or Business Finally, the expense must also be paid or incurred in carrying on the taxpayer's trade or business. These words are defined in the code under section 7701 (a)(26) Trade or Business: The term trade or business" includes the performance of the functions of a public office. The United States Supreme Court held that "to be engaged in a trade or business, the taxpayer must be involved in the activity with continuity and regularity and that the taxpayer's primary purpose for engaging in the activity must be for income or profit. . . . A sporadic activity, a hobby, or an amusement does not qualify." In deciding if an activity is a trade or business, the taxpayer should consider if he/she devoted his full-time exertions to that activity on a regular, continuous and substantial basis. Additionally, the United States Tax Court has held that some expenses, such as payments to a prostitute, are so "inherently personal" that they cannot be deducted as business expenses, even if they are related to the taxpayer's occupation. More information can be found on how to determine if the taxpayer's expenditures are for carrying on his trade or business by examining Treasury Regulation 1.183-2. Application The following are some examples of types of expenses that may be deducted as a business expense: repairs to a damaged office conference table, an annual premium for personal medical insurance, traveling expenses solely related to business, and advertising expenses. The cost to keep a jet on 24-hour standby for business needs was found deductible in Palo Alto Town & Country Village, Inc. v. Commissioner. By