Rick and Ruth Baime Richards - Page 13

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          that books were purchased, but there is no indication what types            
          of books were purchased.                                                    
               Generally the cost of a daily newspaper of general                     
          circulation is a nondeductible personal expense.  See sec. 262;             
          Wallendal v. Commissioner, 31 T.C. 1249, 1252 (1959).                       
          Petitioners have not demonstrated that they subscribed to the               
          newspaper solely or principally for business purposes.  See id.             
          A general circulation newspaper clearly contains a significant              
          amount of information which is inherently of a personal interest.           
          See Pollak v. Commissioner, T.C. Memo. 1984-597.  Petitioners are           
          not entitled to a deduction for the local newspaper.                        
               Additionally, taxpayers must provide evidence sufficient to            
          establish a specific connection between the expenditures and the            
          taxpayer’s trade or business as a writer.  See Gorman v.                    
          Commissioner, T.C. Memo. 1986-344.  Petitioners did not establish           
          a business connection to any of the magazines or the books.                 
          These types of magazines are inherently personal, and we conclude           
          that they are not business expenses under section 162.                      
          Furthermore, even if there were other subscriptions that were               
          related to Mr. Richards’ business, petitioners have failed to               
          prove any amounts for those items.  Accordingly, petitioners are            
          not entitled to a deduction for these items.                                

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