Elliott v. Commissioner
United States Tax Court
Petitioner acquired certain publication rights with respect to a gothic novel and, as consideration, paid $ 31,000 in cash, assigned $ 6,000 of the first proceeds of sales of the books, and assigned 60 percent of the remaining proceeds to be applied against a nonnegotiable, nonrecourse promissory note for $ 198,000. In the light of all of the facts, it is -- Held, that petitioner did not engage in the publication activities with respect to the book with an actual objective…
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Petitioner acquired certain publication rights with respect to a gothic novel and, as consideration, paid $ 31,000 in cash, assigned $ 6,000 of the first proceeds of sales of the books, and assigned 60 percent of the remaining proceeds to be applied against a nonnegotiable, nonrecourse promissory note for $ 198,000. In the light of all of the facts, it is -- Held, that petitioner did not engage in the publication activities with respect to the book with an actual objective of making a profit and, therefore, he is not entitled to deductions for business expenses under sec. 162(a) or sec.…
1Opinion of the Court
Featherston, Judge:
Respondent determined deficiencies in petitioners’ Federal income taxes as follows:
Year Amount
1978 .$41,230
1979 . 21,364
1980 . 17,038
For 1980, respondent also determined that petitioners are liable for an addition to tax under section 6653(a)1 in the amount of $852 but has now conceded that item. For convenience, petitioner John M. Elliott, whose activities produced the present controversy, will be referred to as petitioner.
The controlling issues for decision are as follows:(1) Whether petitioner’s activities in connection with the publication of a book entitled "The House…
2Cases cited31 opinions
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Knetsch v. United StatesSupreme Court of the United States · 1960
- Crane v. CommissionerSupreme Court of the United States · 1947
- Dreicer v. CommissionerUnited States Tax Court · 1982
- United States v. GilmoreSupreme Court of the United States · 1963
26 more not listed; retrieve them via the Exa API.
3Cited by99 opinions
- Beck v. CommissionerUnited States Tax Court · 1985
- Rose v. CommissionerUnited States Tax Court · 1987
- Waddell v. CommissionerUnited States Tax Court · 1986
- Brown v. CommissionerUnited States Tax Court · 1985
- Coleman v. CommissionerUnited States Tax Court · 1986
94 more not listed; retrieve them via the Exa API.