The U.S. Tax Court has agreed with the IRS that a minister
and author could not deduct business expenses. Why? He was not engaged in a
trade or business for profit. To top it off, the reverend also wasn't allowed
any deductions under the more liberal hobby loss rules, because he had no gross
income from these activities. The case is Lewis v. Commissioner, involving a
minister and author named Willie Lewis. He occasionally performed weddings,
attended meetings, and conducted seminars. On his 2011 tax return, he claimed
business expenses from these activities. The IRS said no, assessed more taxes,
and added penalties. So Mr. Lewis went to Tax Court.Friday, July 7, 2017
IRS Rejects Minister Tax Write-Offs For Lack Of Profit Motive
The U.S. Tax Court has agreed with the IRS that a minister
and author could not deduct business expenses. Why? He was not engaged in a
trade or business for profit. To top it off, the reverend also wasn't allowed
any deductions under the more liberal hobby loss rules, because he had no gross
income from these activities. The case is Lewis v. Commissioner, involving a
minister and author named Willie Lewis. He occasionally performed weddings,
attended meetings, and conducted seminars. On his 2011 tax return, he claimed
business expenses from these activities. The IRS said no, assessed more taxes,
and added penalties. So Mr. Lewis went to Tax Court.
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