- 3 -
2. Whether petitioners may deduct $19,158 in 1997 for
expenses incurred in the operation of a bed and breakfast (B&B).
Because we find they used the B&B for personal purposes for an
indeterminate period and failed to substantiate expenses, we hold
that they may not deduct these expenses.
3. Whether petitioners may deduct $1,664 in 1997 and $8,413
in 1998 for expenses related to Mr. Lofstrom’s writing
activities. Because we find they failed to show that
Mr. Lofstrom engaged in the activity of writing for profit, we
hold that they may not deduct these expenses.
Background
The parties submitted the case fully stipulated under Rule
122.2 The stipulation of facts and accompanying exhibits are
incorporated by this reference and are so found. Petitioners
resided in Overland Park, Kansas, at the time they filed this
petition.
Trial was first scheduled for June 14, 2004, but was
continued because petitioners were in Africa. Trial was then
rescheduled for June 6, 2005. Although petitioners were
represented by counsel, they were not present to testify or be
cross-examined. We admitted several documents at trial,
2All section references are to the Internal Revenue Code in
effect for the years in issue, and all Rule references are to the
Tax Court Rules of Practice and Procedure, unless otherwise
indicated.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011