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the articles he wrote during his trip in 1997.
Handyman Activity
In 1993 or 1994 petitioner began performing various handyman
services for compensation. Petitioner’s business card bears the
caption “Home Services” and advertises that petitioner performs
window washing, landscaping, gardening, trash removal, planting,
and yard work.
Tax Return
On the Schedule C, Profit or Loss From Business, of their
1997 Federal income tax return, petitioners grouped petitioner’s
writing activity and his handyman activity as a single business:
GARDENING SERVICE/TRAVEL WRITER. They reported the following
items on their Schedule C:
Income
Gross receipts --
Cost of goods sold --
Gross income1 $370
Expenses
Advertising $184
Office expense 118
Repairs and maintenance 455
Supplies 146
Taxes and licenses 20
Travel 6,768
Meals and entertainment2 1,527
Utilities 120
Other expenses3 3,764
Total expenses 13,102
Tentative loss (12,732)
Net loss4 --
1 All of the reported gross income derived from petitioner’s
handyman activity.
2 Petitioners reported meals and entertainment expenses of
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