Linda Lewis attended the University of Texas at Austin and Southern Methodist University Law School in Dallas. Linda has been an Assistant State's Attorney in Chicago, an Assistant D.A. in Philadelphia, and she currently litigates cases before the United States Tax Court, representing the Commissioner of Internal Revenue.
The term "writer" means any individual if the personal efforts of such individual create (or may reasonably be expected to create) a literary manuscript . . . I.R.C. § 263A(h)(3)(A)
This provision does not affect the deductibility of toll charges for long-distance calls, even if transmitted over the first telephone line in a residence, or periodic charges for a service that entitles the subscriber to the privilege of an unlimited number of telephonic communications to or from persons having telephone stations outside the local telephone system in which the station provided with this service is located.
The provision applies only with respect to the first telephone line in a residence. Thus, for example, if an individual uses one telephone line in his or her residence solely or partly for personal purposes and uses another telephone line solely or partly for business purposes, the provision does not disallow otherwise deductible charges for the latter line. If the taxpayer has only one telephone line in a residence, the provision disallows any deduction for charges required to obtain local telephone service even if the taxpayer claims to use that line solely for business purposes.
To meet the 'adequate records' requirements of section 274(d), a taxpayer shall maintain an account book, diary, log, statement of expense, trip sheets, or similar record . . . and documentary evidence which, in combination, are sufficient to establish each element of an expenditure or use specified in paragraph (b) of this section. It is not necessary to record information in an account book, diary, log, statement of expense, trip sheet, or similar record which duplicates information reflected on a receipt so long as the account book, etc., and receipt complement each other in an orderly manner.
Account book, diary, etc. An account book, diary, log, statement of expense, trip sheet, or similar record must be prepared or maintained in such manner that each recording of an element of an expenditure or use is made at or near the time of the expenditure or use.
We are not convinced that petitioner's travel expenses are deductible: The evidence does not establish any proximate relationship between his travels and his writings. In response to a specific question on this point, petitioner testified that he needed 'background' on certain localities, but his testimony leaves open the worrisome question why he, an airline pilot whose major business is travel, needed background only on areas located near recreational resorts, where he and his wife journeyed and admittedly engaged in the activities normally carried on by vacationers. He introduced into evidence several short stories which he had unsuccessfully offered for publication, but he made no effort to demonstrate how his travels aided in their production. And the setting of his projected novels is not in the West, where he incurred the disputed expenses, but in an entirely different part of the country. We do not think the record justifies a finding that the expenses of his holiday excursions were incurred for business purposes.
The remaining two exceptions, storage space for inventory and day care for children, adults over 65 or mentally or physically disabled persons, do not require exclusive use.
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