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Petitioner contends that this Court should view Fairbanks as part
of a continuing business enterprise begun in 1986 and therefore
take into account tax years prior to 1992 when considering
Fairbanks' history of profits and losses. Petitioner is
attempting to attribute earlier Schedule C profits purportedly
reported by Integrative Learning Designs to Fairbanks' consulting
activity and thereby qualify for the section 183(d) presumption.
Petitioner has failed, however, to establish any connection
between the business activities of Fairbanks and Integrative
Learning Designs. Petitioner started Fairbanks in 1992, and its
financial history, therefore, begins from that date. Since the
gross income derived from petitioner's consulting activity does
not exceed the deductions attributable to his activity for 3 or
more of the taxable years in a 5-year period, petitioner does not
qualify for a section 183(d) presumption.
Since petitioner does not qualify for a presumption that he
engaged in his consulting activity for profit under section
183(d), we turn to section 1.183-2(b), Income Tax Regs., which
provides the following nonexclusive list of factors which may be
considered in determining whether an activity is engaged in with
the requisite profit objective: (1) The manner in which the
taxpayer carries on the activity; (2) the expertise of the
taxpayer; (3) the time and effort expended by the taxpayer in
carrying on the activity; (4) the expectation that assets used in
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