Walter J. Piszczek - Page 14

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          Conclusion                                                                  
               On the basis of our discussion above, we conclude that                 
          petitioner engaged in his Windmill Distillery activity without an           
          actual and honest objective of making a profit.  In light of our            
          conclusion that taxpayer did not have sufficient profit motive to           
          satisfy the requirements of section 174, we also conclude he did            
          not meet the requirements of section 162 and may not deduct                 
          amounts he claimed as ordinary and necessary business expenses in           
          connection with his Windmill Distillery activity.                           
          Other Disallowed Deductions, Additions to Tax, and Penalties                
               Petitioner presented no evidence at trial and made no                  
          arguments in his brief with respect to respondent's disallowance            
          of deductions for meal expenses, eyeglasses, and the attorney               
          licensing fees.  Similarly, at trial and on brief, petitioner did           
          not address the 1988 addition to tax for negligence or the 1989             
          and 1990 accuracy-related negligence penalties.  The burden of              
          proof is on petitioner to show that respondent's determinations             
          set forth in her notice of deficiency are incorrect.  Rule                  
          142(a); Welch v. Helvering, 290 U.S. at 115.  Petitioner has not            
          met his burden with respect to these issues; accordingly we                 
          affirm respondent's determinations.                                         
                                                  Decision will be                    
                                             entered for respondent.                  







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