- 17 - It is obvious that petitioner enjoyed writing and derived personal satisfaction in sharing his opinions and research. Petitioner acknowledged that he conducted tests on guns and wrote about guns because that is a personal interest of his. Petitioner and his wife also traveled for his research, which has elements of personal pleasure. Where the possibility of profit is small (given all the other factors) and the possibility for gratification is substantial, it is clear that the latter possibility constitutes the primary motivation for the activity. See Smith v. Commissioner, supra (citing Burger v. Commissioner, supra). Because petitioner’s writing activity was not an activity engaged in for profit, the activity cannot be considered a trade or business for purposes of section 162(a). Petitioners are not allowed deductions for the expenses claimed for all years in issue. In view of the foregoing, we need not consider the third issue of whether petitioners’ Schedule C expenses are ordinary and necessary and whether they have been substantiated. Based on the foregoing, Decision will be entered under Rule 155.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Last modified: May 25, 2011