-21-
petitioner spent numerous hours per week on his writing activity;
i.e., doing research, writing manuscripts, soliciting publishers,
and conferring in the early stages of publication. Respondent
emphasizes that petitioner worked 40 hours per week as a budget
analyst and suggests that his writing activity could not rise to
the level of a trade or business because he also had a full-time
job. We disagree with respondent. Petitioner's employment at
Treasury does not preclude the possibility that his writing
activity constituted a separate trade or business. We have
recognized that a taxpayer may engage in more than one trade or
business at any one time. See Gestrich v. Commissioner, 74 T.C.
525, 529 (1980), affd. without published opinion 681 F.2d 805 (3d
Cir. 1982); Sherman v. Commissioner, 16 T.C. 332, 337 (1951). It
is also well settled that the term "trade or business" includes
the arts. Snyder v. United States, 674 F.2d 1359, 1363 (10th
Cir. 1982). Furthermore, as we stated in Dickson v. Commis-
sioner, T.C. Memo. 1986-182, "[Taxpayer's] maintaining a full-
time job * * * in addition to his profit-seeking activities is a
positive factor reflecting his motivation, rather than respon-
dent's attempt at negative inference from the fact that peti-
tioner devoted time to other activities."
The fifth factor, the success of the taxpayer in carrying on
other similar or dissimilar activities, does not influence our
analysis because petitioner has not previously engaged in a
Page: Previous 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 NextLast modified: May 25, 2011