Rick and Ruth Baime Richards - Page 14

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               Movies, Plays, and Country and Gospel Music Concerts                   
               Petitioners claimed a deduction of $1,140 for tickets to               
          movies, plays, and music concerts.  Mr. Richards testified that             
          it is a lesson to him to see an actor give a great performance.             
          Mr. Richards also stated that one of his greatest ambitions is to           
          write the book and lyrics for a Broadway musical comedy and that            
          is why petitioners go to the theater.  We find that these                   
          expenses are inherently personal, and Mr. Richards has not                  
          established a business connection to his writing activity.                  
               Travel, Meals, and Entertainment                                       
               Mr. Richards testified that he traveled to Branson,                    
          Missouri, and Las Vegas and Laughlin, Nevada, to see and work               
          with country and gospel performers, to work on screenplay                   
          projects, and to meet with contacts.  Petitioners deducted the              
          expenses of these trips as business expenses in the amount of               
          $3,120.  Petitioners retained receipts from hotels and                      
          campgrounds but did not maintain any other records.                         
               Petitioners claimed a deduction of $2,480 for travel trailer           
          maintenance, supplies, and repairs.  The trailer was pulled                 
          behind petitioners’ Ford truck.  On their return, petitioners               
          claimed that the trailer was used exclusively for business and              
          research trips.  Included in the $2,480 are expenses for                    
          registration, insurance, repairs, annual campground fees, and               
          incidental expenses.                                                        

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Last modified: May 25, 2011