8
that she leased a computer which she used to organize her
accounts. Petitioner introduced copies of two invoices for
monthly lease payments. There is no evidence in the record that
petitioner paid either of these bills. In addition, petitioner
did not maintain any records of her business use of the computer
as required by section 274(d). Thus, petitioner has not
established that she is entitled to any deduction for the
business use of the computer.
Petitioner contends that she incurred an $8,000 loss in her
Too Close To Home activity in 1989, and she argues that she is
entitled to deduct the amount of this loss in that year. On
brief respondent requests that we find the following facts:
"Petitioner carried on the Too Close To Home activity from June
1989 to December 1989. She incurred an $8,000 loss with respect
to this activity during the taxable year." We accept this as a
concession as to the amount of the loss incurred by petitioner.
Respondent argues, however, that petitioner did not engage in
this activity for profit, and that she is therefore not entitled
to deduct this amount.
Section 162 allows deductions for ordinary and necessary
expenses paid or incurred in carrying on a trade or business.
Section 183 generally limits allowable deductions to the extent
of gross income generated by "an activity not engaged in for
profit". Sec. 183(b). Whether petitioner was engaged in the
activity for profit depends on whether she undertook the activity
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