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Television Sets, VCR, and Video Tapes
Petitioners claimed a deduction of $569 for two television
sets, a VCR, and video tapes. In the attachment to Schedule C,
petitioners claim the video tapes are for research film and tape
library. Some of the videos are demo tapes of gospel and country
artists and songs. Petitioners did not address this issue at
trial.
Television sets and VCR’s are inherently personal items
under section 262. These are items that most households have for
personal entertainment, and petitioners have not established
otherwise. Furthermore, petitioners have not shown that the cost
of video tapes of artists is an ordinary and necessary expense to
Mr. Richards’ business as a writer. Therefore, petitioners are
not entitled to a deduction of $569 for these items.
Audio Tape Recording, Studio Fees, Audio Master Tapes, and
Demo Tapes
Petitioners claimed a deduction of $560 for the rental of
recording equipment and for the mixing of tapes. Petitioners
also claimed a deduction of $414 for the cost of audio tapes and
demo tapes. Mr. Richards would send the demo tapes to music
contacts.
It appears that paying for studio time for recording artists
and then sending out the demo tapes is beyond the scope of Mr.
Richards’ business as a writer. This activity is ordinarily that
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