TAX COURT OPINION

Case: Roger & Marilyn Rudenstein
Docket Number: 26749-10S
Judge: Marvel
Opinion Type: bench
Filed: 02/23/2012
Pages: 22

UNITED STATES TAX COURT WASHINGTON, DC 20217 ROGER & MARILYN RUDENSTEIN, Petitioners, v. COMMISSIONER OF INTERNAL REVENUE, ) ) ) ) ) Docket No. 26749-10S ) Respondent. ) ORDE R Pursuant to Rule 152(b), Tax Court Rules of Practice and Procedure, it is ORDERED that the Clerk of the Court shall transmit to petitioners and to respondent a copy of the pages of the transcript of the proceedings of the above case before Judge L. Paige Marvel at Boston, Massachusetts, on February 9, 2012, containing her oral findings of fact and opinion. In accordance with the oral findings of fact and opinion, decision will be entered for petitioners. (Signed) L. Paige Marvel Judge Dated: Washington, D.C. February 23, 2012 SERVED FEB 2 8 2012 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 3 Bench Opinion by Judge L. Paige Marvel Rudenstein v. Commissioner Docket No. 26749-10S February 9, 2012 The Court has decided to render oral findings of fact and opinion in this case and the following represents the Court's oral findings of fact and opinion. The oral findings of fact and opinion shall not be relied upon as precedent in any other case. This case was heard pursuant to the provisions rw Section 7463 of the Internal Revenue Code of 1986 as amended and Rules 170 through 175 of the Tax Court Rules of Practice and Procedure. Pursuant to Section 7463 (b), the decision to be entered is not reviewable by any other court and this opinion shall not be treated as precedent for any other case. This bench opinion is made pursuant to the authority granted by Section 7459(b) of the Internal Revenue Code of 1986 as amended and Rule 152 of the Tax Court Rules of Practice and Procedure. Hereinafter in this bench opinion, unless otherwise indicated, section references are to the Internal Revenue Code of 1986 (Code) as amended and in effect for the year in issue. Rule references are to Heritage Reporting Corporation (202) 628-4888 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 4 the Tax Court Rules of Practice and Procedure. Roger and Marilyn Rudenstein, Mr. and Mrs. Rudenstein, appeared pro sese. Erika B. Cormier appeared on behalf of Respondent. When they filed their petition, Mr. and Mrs. Rudenstein resided in New Hampshire. In a notice of deficiency issued to Mr. and Mrs. Rudenstein on September 7, 2010, Respondent determined a deficiency of $6,476 in their federal income tax and an accuracy related penalty under Section 6662(a) of $1,295.20 for 2007. The deficiency arises from Respondent's disallowance of all business expenses claimed on Mr. and Mrs. Rudenstein's 2007 Schedule C profit or loss from business, relating to Mr. Rudenstein's classical music composition and production activity. Mr. Rudenstein did not report any income from the activity on the Schedule C, and he claimed a $25,434 loss equal to the total expenses deducted thereon. The sole issue we must decide is whether the expenses were ordinary and necessary business expenses deductible under Section 162. Our resolution of that issue depends upon whether Mr. Rudenstein's music composition and production activity constituted an activity engaged in for profit within the meaning of Heritage Reporting Corporation (202) 628-4888 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 5 Section 183. Respondent argues that Mr. Rudenstein did not conduct the activity with the intention of making a profit and that Section 183 bars Mr. Rudenstein from claiming the expenses and corresponding loss from that activity. Mr. Rudenstein, whom Respondent concedes is a composer, contends that he intended to make a profit from his music composition and production activity. The parties have stipulated some of the relevant facts and we find facts in accordance with the stipulations, which we inco.rporate in this opinion by this reference. We also find facts on the basis of the stipulated exhibits and, to the extent we find it credible, sworn testimony. Facts Mr. Rudenstein graduated from Antioch College in 1967 with an undergraduate degree in drama. While he was in college, he served as the artistic director of an experimental theater for approximately three years. After graduation, he founded the October Theater and served as its artistic director for approximately two years. During the 1970s, Mr. Rudenstein volunteered for the antiwar movement and for other causes. He also studied computer programming and was hired as a programmer by several Heritage Reporting Corporation (202) 628-4888 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 companies. During the 1980s, he not only worked as a computer programmer, but he also decided to try his hand at music composition. He had learned some music composition fundamentals while he was in high school, but he wanted to compose opera. So, he began to study with two professional musicians, Walter Hilse, who taught at the Manhattan School of Music and at Columbia University,. and Fu Yuan Soong. In 1981, he began to compose opera. He understood at the time that renowned opera companies sometimes would commission operas for substantial fèes and he hoped to deve.lop a body of work that would attract such commiss:ions. In 1986, the Center for Contemporary Opera in New York City produced Mr. Rudenstein's first opera, Faustus Part One, with funding for the production supplied in part by Mr. Rudenstein. Since the beginning of his music composition and production activity, Mr. Rudenstein has continued to compose opera and other classical pieces. After September 11, 2001, Mr. Rudenstein expanded his composition activities to include chamber music because, among other things, composing and producing recordings and performances of chamber music required Heritage Reporting Corporation (202) 628-4888 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 7 a smaller investment of time and money and still offered the potential for profit. Mr. Rudenstein also expanded his marketing activities in an effort to enhance his reputation as a composer and to generate interest in his compositions. For example, he put his four operas on the internet and developed a website. He also entered into several recording contracts, including at least one recording contract with ERM Media, which recorded, among other of his works, his "String Quartet Number 5 - The Nightmare; of Reason". In 2008, ERM Media recommended the recording for Grammy award nominations in the "Best Chamber Music Performance" and "Best Contemporary Composition" categories. Some time during the 2000's, Mr. Rudenstein hired Ariel Publicity, a music consultation and marketing firm, to advise him regarding the marketing of his compositions and the enhancement of his reputation as a composer. This consultation resulted in the creation of social network pages on Facebook and MySpace, the creation of an online press kit for Mr. Rudenstein's comic opera, "The Devil and George Bush", which Mr. Rudenstein recorded and offered for free to those who provided an e-mail address for use in future marketing efforts, and the distribution of Heritage Reporting Corporation (202) 628-4888 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 8 the opera to over 100 web radio stations. Mr. Rudenstein also established several websites for his music composition activity, including rogerrudenstein.com, devilandgeorgebush.com, and operaguy.com, and he offers several of his works for sale on internet sites such as iTunes and Amazon. To date, Mr. Rudenstein has proposed seven full length operas, including Faustas Part One, performed in 1986, The Devil and George Bush, recorded in 2007 and premiered on the internet, The Trial of George Bush, recorded in 2008 and premiered on the internet, Ulysses, premiered by the Players' Ring in 1999 in Portsmouth, New Hampshire, and Grace, premiered by Opera on The Edge, a production vehicle used by Mr. Rudenstein for this opera, in 2004 in Cambridge, Massachusetts. He has also composed 25 piano sonatas, four double piano sonatas, two sonatas for clarinet and piano, several symphonic pieces, several trios, seven string quartets and other pieces. Although most of the pieces have not yet been recorded or publicly performed, several have and in some cases, to favorable reviews. Notable examples include recordings of State of the Union by MMC Recordings, String Quartet Number 5 on Masterworks of the New Era Heritage Reporting Corporation (202) 628-4888 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 9 Number 12 by ERM Media, 2006, Piano Trio Number 3 on Masterworks of the New Era, Number 13 by ERM Media 2007, Double Concerto for Clarinet and Piano, "Blues for New Orleans", MMC Recordings 2008, and Piano Trio Numbers 5, "Salvation Blues", NOR Recordings 2009, and 22 "In These Times", NOR Recordings 2010. Both of the pieces recorded by NOR features pianist Paul Dykstra (Mr. Dykstra) r. Rudenstein has consulted on a weekly basis since 2004. Mr. Dykstra wrote a letter on Mr. Rudenstein's behalf which was a stipulated exhibit in this case. Mr. Dykstra, a classically trained pianist who performs, teaches and records, stated the following with respect to Mr. Rudenstein: "Roger has composed many serious and demanding compositions which have been refined and reworked, promoted in featured recordings, including A with myself, Richard Stoltzman world famous clarinetist) and many other artists on the MMC, ERM and NOR recording labels. Mr. Rudenstein is seriously dedicated to, and has a progressive understanding of, classical music composition and promotion in our century. I first met him in 2002 and have continued regular consults and collaboration with him on many projects ever since, including opera, chamber works, Heritage Reporting Corporation (202) 628-4888 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 10 solo instrumental works and political satire. I have recorded in 2007 a solo CD which includes works by this same composer. As a faculty member of the Concord Community Music School, I have also been involved in the world concert premieres of his Clarinet and Piano Sonata, and his Sonata For Two Pianos, to enthusiastic acclaim. In my opinion, Roger's main passion and goal in life is the promotion of his work with the goal of becoming an acclaimed composer with best-selling recordings and commissions A r from major orchestras, ensembles and opera companies." In 2007, the year in issue, Mr. Rudenstein entered into a recording project agreement with MMC Recordings under which MMC agreed to produce a CD recording of one of Mr. Rudenstein's orchestral pieces featuring Richard Stoltzman and Mr. Dykstra. Mr. Rudenstein was responsible for the timely completion of the score and was obligated to pay $24,500 for the completion of an edited master recording. Mr. Rudenstein retained all rights to the composition subject to MMC's right to produce and release one pressing of 1,000 copies of the CD. After the ¼000 d copies are "exhausted", the rights to the master recording revert to Mr. Rudenstein, and presumably, Mr. Rudenstein would then have the opportunity to Heritage Reporting Corporation (202) 628-4888 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 profit from sales of the recording. To date, the initial pressing of ¼000 copies has not been sold and W Mr. Rudenstein has not earned any income from this 11 recording. Mr. Rudenstein did not maintain formal books and records with respect to his music composition and production activity or have a business bank account during 2007. He used his personal bank account and credit card to pay expenses incurred with respect to his music activity. Respondent, however, concedes that Petitioner substantiated all of the larger expenses and does not challenge any of the expenses claimed for lack of substantiation. Mr. Rudenstein has expanded his composition activities over the years and has increased his marketing efforts in an effort to establish and enhance his reputation as a composer of classical music. However, Mr. Rudenstein, who, from at least 2003 through 2009, has been employed full time as a computer programmer at a lucrative salary, has claimed losses from his music composition and production activity as follows: // // // Heritage Reporting Corporation (202) 628-4888 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 12 Year 2003 2004 2005 2006 2007 2008 2009 Amount (5,734) (61,281) (3,535) (46,017) (25,434) (51,976) (13,152) Total (207,129) Mr. Rudenstein did not report any gross income from the music activity for any year except 2004, and even with the reported income of $2,450, Mr. Rudenstein still claimed a substantial net loss ln 2004. Legal nalysis Deductions are a matter of legislative grace and a taxpayer ordinarily must prove that he is entitled to the claimed deduction. Rule 142(a); INDOPCO, Inc. v. Commissioner, 503 U.S. 79, 84 (1992). In general, Section 162(a) allows a deduction for all ordinary and necessary expenses paid or incurred during the taxable year in carrying on a trade or business. The term "trade or business" is not precisely defined by the code or the regulations thereunder. Heritage Reporting Corporation (202) 628-4888 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 13 However, for an activity to be considered a trade or business for purposes of Section 162, the activity must be conducted with "continuity and regularity" and "the taxpayer's primary purpose for engaging in the activity must be for income or profit." Commissioner v. Groetzinger, 480 U.S. 23, 35 (1987.) Although Mr. Rudenstein conducted his musical composition activity while he was employed full time as a computer programmer, we are satisfied that Mr. Rudenstein conducted his musical composition activity during 2007 with continuity and regularity. Nevertheless, in order for an activity to be considered a trade or business within the meaning of Section 162, a taxpayer must conduct the activity with the intent to make a profit. See id. Petitioner is quite vehement that he engaged in his music composition and production activity at all times with the intent to make a profit. Respondent understandably disputes that Mr. Rudenstein intends to make a profit from his music composition activity, primarily because the activity has resulted in substantial net losses that Mr. and Mrs. Rudenstein have used every year since Mr. Rudenstein started to report the activity on their ederal income tax Heritage Reporting Corporation (202) 628-4888 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 14 returns, (the exact year is not established by the record, but is likely some time in the late 1980s,) to offset the substantial income Mr. and Mrs. Rudenstein earn from Mr. Rudenstein's full time job as a computer programmer and other sources, such as investments. Section 183(a) provides that, in the case of an activity engaged in by an individual taxpayer, if the activity is not engaged in for profit, no deduction attributable to such activities shall be allowed, except as provided in Section 183 (b). Section 183(b) limits the deductions ;attributable to an activity not engaged in for profit to (1) deductions that would be allowable for the taxable year regardless of whether the activity was engaged in for profit, and Ó), deductions that would be allowable if the activity were engaged in for profit but only to the extent that gross income from the activity exceeds the deductions allowable under(1). The test of whether a taxpayer conducted an activity for profit is whether he entered into and continued the activity with an actual or honest objective to make a profit. See Section 1.183-2(a), Income Tax Regs; Estate of Power v. Commissioner, 7 3 6 F . 2d 826 , 830 F+ret--e+rees-t-1-944 , af f irming T . C . Memo. 1983-552; see also, Keanini v. Commissioner, 94 Heritage Reporting Corporation (202) 628-4888 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 15 T.C. 41, 46 (1990); Dreicer v. Commissioner, 78 T.C. 642, 644-645 (1982), affirmed without published opinion, 702 F.2d 1205 (D.C. Cir. 1983). Although a reasonable expectation of profit on a taxpayer's part is not required, the profit objective must be bona fide as determined from a consideration of the surrounding facts and circumstances. Keanini v. Commissioner, 94 T.C. at 46; Golanty v. Commissioner, 72 T.C. 411, 426 (1979), affirmed without published opinion, 647 F.2d 170 (9th Cir. 1981); Bessenvey v. Commissioner, 45 T.C. 261,; 274 (FSG2), affirmed, 379 F.2d 252 (2d Cir. 1967); Wardrum v. Commissioner, T.C. Memo. 1990-121, affirmed without published opinion, 940 F.2d 646 (1st Cir. 1991). Ordinarily, the taxpayer bears the burden·of proving by a preponderance of the evidence that he had an honest objective of making a profit when he engaged in the activity at issue. Filios v. Commissioner, 224 F.3d 16, 21 (1st Cir. 2000), affirming T.C. Memo. 1999-92; Estate of Power v. Commissioner, 736 F.2d at 828. Whether Mr. Rudenstein engaged in his music composition activity with an actual and honest objective of realizing a profit must be redetermined annually, taking into account all of the relevant facts and circumstances. Section 1.183-2(a) and (b), Heritage Reporting Corporation (202) 628-4888 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 16 Income Tax Regs.; Filios v. Commissioner, 224 F.3d at 21; Golanty v. Commissioner, 72 T.C. at 426. We give more weight to the objective facts than to the taxpayer's statement of his intent. Section 1.183- 2(a), Income Tax Regs.; Engdahl v. Commissioner, 7 .C. 659, 666 (1979) Gorod v. Commissioner, T.C. Memo. 1987-73, affirmed without published opinion, 852 F.2d 564 (1st Cir. 1988). We examine the following factors in deciding whether a taxpayer is conducting an activity with the intent to make a profit: Ô_), the manner in which the taxpayer carries on the activity; Ó), the expertise of the taxpayer or his advisors; (3), the time and effort expended by the taxpayer in carrying on the activity; (4), the expectation that assets used in ·the activity may appreciate in value; (5), the success of the taxpayer in carrying on other similar or dissimilar activities;(6), the taxpayer's history of income or loss with respect to the activity; Ô), the amount of occasional profits, if any, which are earned; (8), the financial status of the taxpayer; and(9), elements of personal pleasure or recreation. Section 1.183-2(b), Income Tax Regs. No one factor is determinative, and our conclusion with respect to a taxpayer's profit motive does not depend upon merely counting up those factors that support a Heritage Reporting Corporation (202) 628-4888 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 17 finding of profit motive and those that do not. See Section 1.183-2(b), Income Tax Regs. Taking into account each of the listed factors and considering the facts and circumstances relating to Mr. Rudenstein's music composition activity, we are persuaded, albeit by a very slim preponderance of the evidence, that Mr. Rudenstein intended to make a profit when he engaged in the activity during 2007. Our conclusion reflects our findings of fact, our application of the factors, and most importantly, an evaluation of Mr. Rudenstein's professed intent to make a profit as reflected in his composition and production efforts and his continuing efforts to market his compositions. Admittedly, there are factors in this case that might indicate the absence of a genuine profit motive. For example, Mr. Rudenstein is not dependent on income from his composition activities, but supports himself financially through his work as a computer programmer, see Section 1.183-2 (b) (8), Income Tax Regs; he has a history of losses and has earned no occasional profits, see Section 1.53-2(b) (6) and (7), Income Tax Regs; and he derives pleasure from composing works of music, see Section 1.183-2(b) (9), Income Tax Regs. However, the fact that Mr. Heritage Reporting Corporation (202) 628-4888 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 18 Rudenstein derived personal pleasure from composing music is insufficient to classify the activity as not engaged in for profit, particularly if other factors indicate that a profit motive existed. See, example, Churchman v. Commissioner, 68 T.C. 696, 702, (1997), Wesley v. Commissioner, T.C. Memo. 2007-78. Although Mr. Rudenstein may have derived personal pleasure from composing music, we believe that he primarily sought recognition and profit. See Estate of Power v. Commissioner, 736 F.2d at 831; Waitzkin v. Commissioner, T.C. Memo. 1992-216. Furthermore, his activity was not limited to composing music, but included the marketing phase of the music business where the recreational 4.1e-vvia.n(cid:16)040 is minimal, see, for example, Churchman v. Commissioner, 68 T.C. at 702. Mr. Rudenstein made substantial efforts to promote and market the recordings of his compositions, and we cannot find that Mr. Rudenstein derived personal pleasure from engaging in such efforts. While it is true that Mr. Rudenstein's income from his work as a computer programmer enabled him to pursue his composing career, despite his history of losses, See, for example, Waitzkin v. Commissioner, T.C. Memo. 1992-216, a history of losses is "less persuasive in the art field than it Heritage Reporting Corporation (202) 628-4888 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 19 might be in other fields because the archetypical 'struggling artist' must first achieve public acclaim before *** [the artist's] serious work will command a price sufficient to provide *** [the artist] with a profit." Churchman v. Commissioner, 68 T.C. at 701- 702. Although Mr. Rudenstein has not achieved the public acclaim that would assist him in making a profit, he has received favorable reviews for some of his compositions and appears to be developing a reputation as a serious composer within the music community. See example, Waitzkin v. Commissioner, T.C. Memo. 1992-216. As Mr. Rudenstein testified, opera companies and other music will sometimes commission new musical works for substantial fees and presumably will offer those commissions to composers based on their reputations and body of work. Given his expertise, extensive repertoire of compositions and engagement in marketing and promotional activities, we find that Mr. Rudenstein has the potential to generate a profit from his music composition and production activity, despite his history of losses and lack of occasional profits. The other factors indicate that Mr. Rudenstein engaged in composing music for profit. Mr. Rudenstein has an undergraduate degree in drama and Heritage Reporting Corporation (202) 628-4888 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 20 extensive experience in theater. His work has been produced by the Center for Contemporary Opera in New York City, the Player's Ring and other companies. He has a recording contract with ERM Media. And his String Quartet Number 5 was recommended for a Grammy award nomination. Articles about Mr. Rudenstein have appeared in newspapers and other print media as well as online. When he decided to start composing opera music, Mr. Rudenstein began studying with two professional mus1clans. Because Mr. Rudenstein did not have expertise in advertising or marketing, he hired a music marketing firm to help him market his compositions and enhance his reputation as a composer. for example, Filios v Cummloolun, 224 F.3d at omm(cid:0)5236nw See, 24. Mr. Rudenstein spends at least 30 hours per week working on his composition activity, including composing new works, publicizing his works and selling his recordings on the internet. He devotes an extensive amount of that time to developing his main asset, his repertoire of works. Mr. Rudenstein expects that the value of his works will appreciate and acknowledges that an artist's work often appreciates only after death. These facts indicate Heritage Reporting Corporation (202) 628-4888 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 21 that Mr. Rudenstein has a profit motive. See Section 1.183-2(b) (2) through (4), Income Tax Regs; see also Churchman v. Commissioner, 68 T.C. at 702-703. Although Mr. Rudenstein did not maintain formal books and records or have a business bank account for 2007, he conducted his music composition activity in a businesslike manner. Mr. Rudenstein substantiated all of his larger expenses he claimed on his Schedule C, /nd Respondent agrees that L substantiation of his Schedule C expenses is not at issue. He maintains records of his expenses and his activity is not so complicated that formal books of account or a business bank account are warranted, particularly when the associated costs of maintaining a business bank account and formal accounting records are considered. See, example, Churchman v. Commissioner, 68 T.C. at 702; Vitale v. Commissioner, T.C. Memo. 1999-131, affirmed without published opinion, 217 F.3d 843 (4th Cir. 2000). Additionally, Mr. Rudenstein carried on his composition activity in a manner consistent with the way a similarly situated composer would approach such activity, see Section 1.183-2(b) (1), Income Tax Regs. For instance, Mr. Rudenstein has both recorded and Heritage Reporting Corporation (202) 628-4888 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 22 publicly produced a number of his works. He offers his recordings for sale on iTunes, Amazon and Rhapsody, among other internet stores; fúld he maintains a mailing list of people interested in his compositions so that he can market his future works to them. Mr. Rudenstein has also changed his operating methods to improve the profitability of his composing activity. See Section 1.183-2(b) (1), Income Tax Regs; see also, Filios v. Commissioner, 3+3 F.3d 2.2.4 A at 23. In late 2001, Mr. Rudenstein expanded his composition activities to include chamber music, which costs less money to produce, but can generate revenues. Over time, Mr. Rudenstein has taken steps to improve profitability, including hiring a music consultation and marketing firm, developing multiple websites, creating social networking pages and an online press kit, and distributing his comic opera to over web radio stations. The record establishes that Mr. Rudenstein is a dedicated composer who intends and expects to make a profit from his music composition activity. After a review of the factors, we conclude that, on balance, Mr. Rudenstein has proven, by a preponderance of the evidence, that his composing activity was an Heritage Reporting Corporation (202) 628-4888 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 23 activity engaged in for profit. Consequently, we find that Mr. Rudenstein is entitled to deduct the expenses claimed on his 2007 Schedule C. To reflect the foregoing, decision will be entered for Petitioner. This concludes the Court's oral findings of fact and opinion in this case. (Whereupon, at 1:35 p.m., the bench opinion in the above-entitled matter was concluded. ) // // // // // // // // // // // // // // // // Heritage Reporting Corporation (202) 628-4888