Morgan L.Lucid and Mary J. Lucid - Page 17

                                       - 17 -                                         

          statement of intent.  Independent Elec. Supply, Inc. v.                     
          Commissioner, 781 F.2d 724 (9th Cir. 1986), affg. Lahr v.                   
          Commissioner, T.C. Memo. 1984-472; Beck v. Commissioner, supra at           
          570; Thomas v. Commissioner, 84 T.C. 1244, 1269 (1985), affd. 792           
          F.2d 1256 (4th Cir. 1986); Dreicer v. Commissioner, supra.                  
               Section 1.183-2(b), Income Tax Regs., provides a                       
          nonexclusive list of factors relevant to the issue as to whether            
          the taxpayer has the requisite profit objective.  These factors             
          are:  (1) The manner in which the taxpayer carries on the                   
          activity; (2) the expertise of the taxpayer or his advisers;                
          (3) the time and effort expended by the taxpayer in carrying on             
          the activity; (4) the expectation that the assets utilized by the           
          taxpayer 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 losses with respect to the                  
          activity; (7) the amount of occasional profits, if any, which are           
          earned; (8) the financial status of the taxpayer; and (9) whether           
          elements of personal pleasure or recreation are involved.  Not              
          all of these factors are applicable in every case.  Brannen v.              
          Commissioner, 722 F.2d 695, 704 (11th Cir. 1984), affg. 78 T.C.             
          471 (1982); Taube v. Commissioner, 88 T.C. 464, 479-480 (1987);             
          Abramson v. Commissioner, 86 T.C. 360, 371 (1986); Allen v.                 
          Commissioner, supra at 34.  No one factor nor a majority of the             
          factors is necessarily determinative, and we do not reach our               
          conclusion by simply counting the factors that support each                 



Page:  Previous  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  26  Next

Last modified: May 25, 2011