N. Joseph Calarco - Page 10

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          like activity.  The marketing of art--because it may take the               
          form of gallery shows and sales--is more readily visible than the           
          marketing of drama or musical theater; nevertheless, a parallel             
          exists between the marketing of sculpture in Churchman and                  
          petitioner’s strenuous efforts to get his various plays produced.           
          For example, the petitioner had a play read in Lincoln Center as            
          early as 1990.  In 1997--the year at issue--he was almost                   
          completely unsuccessful in marketing his work.  But, in a real-             
          life peripeteia, his long-developing play “Beethoven is . . . .”            
          won first-prize (from among hundreds of entries) in a National              
          New Play Competition sponsored by Humboldt State University.                
          This won the play a production at the university, and entitled              
          petitioner to a two-week residency including travel and a $1,000            
          royalty.  He also received various administrative benefits from             
          Wayne State (including a sabbatical) that both recognized and               
          furthered his playwriting.  He traveled to get his play before              
          audiences both in full performance and for readings.  He also               
          worked at adapting “Beethoven is . . . .” into a screenplay, as             
          well as creating a stage version suited to smaller theaters.  He            
          kept records of many of his various expenses, such as travel logs           
          and receipts.15  Thus, we find that petitioner did in fact carry            

               15 We look to those successes and activities from later                
          years as part of the examination of “all facts and circumstances”           
          required by Sec. 1.183-2(b), Income Tax Regs.  Cf. Regan v.                 
          Commissioner,T.C. Memo. 1979-340.                                           






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