on other similar or dissimilar activities; (6) the taxpayer's
history of income or losses from the activity; (7) the amount of
occasional profits, if any, from the activity; (8) the financial
status of the taxpayer; and (9) elements of personal pleasure or
recreation. This list is nonexclusive, and no single factor or
even a majority of factors necessarily controls. Abramson v.
Commissioner, 86 T.C. 360, 371 (1986); sec. 1.183-2(b), Income
Tax Regs.
III. Boat Charter Activities
The boat charter activities were operated by Island
Ventures, Inc., petitioners' S corporation. The claimed losses
were passed through the S corporation to petitioners and claimed
on their joint Federal income tax returns.5 Losses attributable
to the sailboat charter activity were claimed only for the 1986
year because the sailboat was not offered for charter in later
years, even though it continued to be owned by petitioners.
Losses attributable to the fishing boat charter activity were
claimed for 1986 and 1987. For 1988, petitioners claimed legal
fees incurred in connection with the fishing boat.
A. Sailboat Activity
In 1979, Mr. Hilliard purchased a Columbia 32-foot sailboat
(sailboat) for approximately $65,000. The sailboat was placed
with Captain George's charter service in the San Francisco Bay
5 If we hold that either of the boat charter activities was
engaged in for profit, then we must decide whether the losses
from that activity are subject to the S corporation loss
limitation rules under sec. 1366(d)(1).
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