Deborah Joyce Windisch - Page 11

                                       - 11 -                                         
          nothing more than a conscious attention to detail.  Golanty v.              
          Commissioner, supra at 430.  Petitioner had extensive experience            
          with accounting work, and it is natural to expect that she would            
          apply that experience to her photography activity.  Moreover, it            
          does not seem that the records were kept for the purpose of                 
          cutting expenses, realizing profits, or evaluating the overall              
          performance of the operation.                                               
               Rather, it appears that the principal purpose of                       
          petitioner's records was to substantiate claimed deductions from            
          income for tax purposes.  Analysis of petitioner's records                  
          reveals that her activity was operated with little or no regard             
          for the level of expense incurred in relation to the small amount           
          of income yielded by the activity.  Petitioner frequently                   
          incurred costs for restaurant meals and groceries in connection             
          with her photography activity, explaining that she and the people           
          she met had to eat anyway, and so would meet over a meal to                 
          discuss photography.  We note that many of petitioner's clients             
          during the years in issue were coworkers, friends, and family,              
          and petitioner has not convinced us that many of the meals did              
          not have significant personal or social aspects for her.  Indeed,           
          the meetings and other contacts with persons in connection with             
          her photography activity recorded by petitioner largely appear              
          consistent with ordinary social activities.                                 
               Petitioner has not established that she did not use her                
          photography activity as a means of deducting personal expenses              




Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011