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deductions by respondent on Schedule E. Moreover, some of the
checks introduced into evidence by petitioner were payments to an
attorney for legal services to petitioner. Petitioner,
therefore, was not engaged in the practice of law during 1991.
With respect to petitioner's solar activity, there is no
question that petitioner was actively engaged in this activity
for several years and that the activity rose to the level of a
trade or business for purposes of section 162(a). The question,
however, is whether this activity was conducted by petitioner
individually or whether the activity was engaged in by a
corporation.
In 1962 petitioner incorporated Thomason Solar Homes, Inc.
(Thomason Solar), for the purpose of conducting all of his solar
energy research and invention activities. Respondent contends
that the expenses attributable to petitioner's solar energy
activity in 1991 are properly deductible on the corporate return
of Thomason Solar, rather than on petitioner's individual return.
Thomason Solar was still in existence throughout 1991 and the
corporation filed a Form 1120, U.S. Corporation Income Tax
Return, for that year.14 Thomason Solar reported income of
$13.79 and deductions of $2,714.85 for 1991.
14
Petitioner testified that he had filed documents to dissolve
Thomason Solar sometime during 1991 or 1992. However, he later
admitted that the Maryland Department of Taxation and Assessment
records reflect that Thomason Solar was "forfeited" on Oct. 3,
1994, for failure to file a corporate tax return.
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