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more than 4 years after the taxable year in issue and cannot be
considered evidence of Mr. Deward’s being in the active trade or
business of an author in 2001.
Respondent notes that unless petitioners show that Mr.
Deward was actively engaged in the business of being an author
for profit, his expenses will be disallowed under section 183.
However, respondent cites Goldman v. Commissioner, T.C. Memo.
1990-8, for the proposition that whether Mr. Deward had a profit
objective is of little relevance if he did no more than prepare
to begin the business of being an author. In Goldman, the
taxpayer worked 15 to 20 hours per week in the process of making
a documentary film. However, at the time of the trial, the
taxpayer estimated it would take another 1-1/2 to 2 years to
complete the film, which he could not sell until it was
completed. For the year at issue in that case, the taxpayer had
reported a loss attributable to his filming activities. This
Court held that even if the taxpayer were found to have the
requisite profit objective, we would sustain the Commissioner’s
contention that the taxpayer was “merely preparing to enter the
trade or business of producing and marketing films.”
Mr. Deward’s situation is similar to that of the taxpayer in
Goldman. Whether or not he had a profit motive, Mr. Deward has
failed to establish that he did anything more in 2001 than
research for the book that he intends to write about WWI. The
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Last modified: November 10, 2007