Joseph R. and Diana K. Trudel - Page 5




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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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