John R. and Lois J. McCarthy - Page 17




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                  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.                                  











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