- 9 - 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.Page: Previous 1 2 3 4 5 6 7 8 9 10 NextLast modified: November 10, 2007