- 7 -
OPINION
Section 162(a) allows a deduction for all ordinary and
necessary expenses paid or incurred during the taxable year in
carrying on any trade or business. To be engaged in a trade or
business within the meaning of section 162, “the taxpayer must be
involved in the activity with continuity and regularity and * * *
the taxpayer’s primary purpose for engaging in the activity must
be for income or profit.” Commissioner v. Groetzinger, 480 U.S.
23, 35 (1987).
Petitioner asserts that, during 1993, he was engaged in the
trade or business of writing on the topics of religion and
philosophy, of working towards creating a homeless shelter,
and/or of being a lecturer/teacher. Respondent asserts that
petitioner was not engaged in any such business activities during
1993 except as an employee, and that he was writing for “mere
personal enjoyment”. We agree with respondent.
With respect to petitioner’s lecturing/teaching activities,
the only remuneration received by him was Form W-2 wage income
from the INS, Chapman University, and the Navy. We find that
petitioner did not perform teaching or lecturing activity
separate and apart from this employment. Clearly, petitioner is
not entitled to Schedule C deductions for expenses relating to
wage income. It is possible that petitioner is entitled to a
Schedule A employee business expense deduction for overnight
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011