Danon Eugene Wesley - Page 9




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          the taxpayer was engaged in a trade or business with regard to              
          his photographic endeavor, but remanded the case to the trial               
          court to resolve the questions of whether the taxpayer was                  
          primarily motivated by his love of photography as a hobby or by a           
          good faith expectation of profit and whether the taxpayer devoted           
          enough time over a substantial period to be engaged in a trade or           
          business.  Id. at 1364.  The District Court was warned on remand            
          that the mere fact that a taxpayer author has not yet produced a            
          book does not necessitate the conclusion that he is not engaged             
          in a trade or business.  Id. at 1363.                                       
               The Court of Appeals for the Tenth Circuit in Snyder                   
          emphasized that a taxpayer must both possess a good faith profit-           
          making purpose and spend a substantial amount of time over a                
          significant period engaged in the activity in order for that                
          activity to be considered a trade or business.  Id. at 1364.  For           
          the reasons stated above, including the minimal time and effort             
          disclosed in the record, we conclude that petitioner was not                
          engaged in a trade or business with regard to his recording                 
          activity.                                                                   
               Respondent also determined an addition to tax for late                 
          filing pursuant to section 6651(a)(1) because petitioner did not            
          file his 1996 return until January 8, 2004.  There is no evidence           
          that petitioner applied for an extension of time to file his                
          return.                                                                     







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