Ok, I just don’t understand the logic behind this case from a tax standpoint; from a curiosity stand point yes, but not a tax standpoint, no.
A son took it upon himself to start an investigation in 2003 of his father’s mysterious death in 1946.
The son paid millions of dollars to private investigators and other experts to help him find out whether his father, who died when the taxpayer was a child, was murdered or actually committed suicide.
Ultimately he had hopes of turning the story into a book or movie at some point in the future. But he had been doing this for over 10 years without generating a profit, so the appeals court deemed it a hobby and the costs incurred were not deductible.
Vest, 5th Cir.