- 6 -
capitalize on the resultant publicity to develop commercial
interest in his unique patrol ideas.
Interscope paid petitioner $10,000 under the contract for
consulting services in connection with the development of a
screenplay, which income petitioner reported as wage income on
his 1993 Federal income tax return.6 Petitioner also received
$4,500 from Golden Door Productions, the movie studio which
helped petitioner sell his idea to Interscope, and $2,216 from
miscellaneous sources for various appearances as a "hand model"
and as an "entertainer". Petitioner reported these
amounts, a total of $6,716, on Schedule C attached to
his 1993 Federal income tax return. Petitioner claimed an
$11,465 advertising expense deduction on Schedule C representing
petitioner's total ballot expenditures for Proposition BB.7
6 Petitioner is still under contract with Interscope. If
Interscope exercises the option and a movie is ever made,
petitioner will earn $25,000 as a consultant, plus 15 percent of
the fee which would be paid to the producers of the film, and 33
percent of the profits to be paid to the producers from any
assignment of the story.
7 This amount includes $9,711.49 for signature gatherers,
$1,200 in contributions to local political organizations that
endorsed Proposition BB on their local slates, and other
miscellaneous expenses. Though petitioner only claimed as
advertising expenses the amount of $11,465 on Schedule C of his
1993 Federal income tax return, the parties stipulated that
petitioner incurred total ballot expenses in the amount of
$11,645. The difference between these two numbers seems to be a
transpositional error.
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Last modified: May 25, 2011