Jay M. Anderson and Helen B. Anderson - Page 13

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                  Whether a taxpayer has the requisite actual and honest                                
            objective of making a profit is a question of fact to be resolved                           
            on the basis of all of the facts and circumstances of the                                   
            particular case.  Golanty v. Commissioner, 72 T.C. 411, 426                                 
            (1979), affd. without published opinion 647 F.2d 170 (9th Cir.                              
            1981); Dunn v. Commissioner, 70 T.C. at 720.  The taxpayer bears                            
            the burden of proof on this issue.  Rule 142(a).  In resolving                              
            this factual issue, greater weight is accorded to objective facts                           
            than to a taxpayer's mere statement of intent.  Thomas v.                                   
            Commissioner, 84 T.C. 1244, 1269 (1985), affd. 792 F.2d 1256 (4th                           
            Cir. 1986); Dreicer v. Commissioner, 78 T.C. at 645; sec. 1.183-                            
            2(a), Income Tax Regs.                                                                      
                  Section 1.183-2(b), Income Tax Regs., sets out a                                      
            nonexclusive list of nine factors relevant to the issue as to                               
            whether the taxpayer has the requisite actual and honest profit                             
            objective.8  Not all of these factors are applicable in every                               
            case, and no one factor is controlling.  Taube v. Commissioner,                             
            88 T.C. 464, 479-480 (1987); Abramson v. Commissioner, 86 T.C.                              

            8 These factors are:  (1) Manner in which the taxpayer                                      
            carries on the activity; (2) the expertise of the taxpayer or his                           
            advisors; (3) the time and effort expended by the taxpayer in                               
            carrying on the activity; (4) expectation that assets used in                               
            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 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)                                   
            elements of personal pleasure or recreation.  Sec. 1.183-2(b),                              
            Income Tax Regs.                                                                            

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