Charles A. Ballard - Page 13

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          Commissioner, supra at 46; Golanty v. Commissioner, supra at 426;           
          sec. 1.183-2(a), Income Tax Regs.                                           
               Section 1.183-2(b), Income Tax Regs., provides a                       
          nonexclusive list of factors to be considered in determining                
          whether an activity is engaged in for profit.  No single factor             
          is determinative.  Keanini v. Commissioner, supra at 47; Taube v.           
          Commissioner, 88 T.C. 464, 479-480 (1987); sec. 1.183-2(b),                 
          Income Tax Regs.                                                            
               Taking into account the factors set forth in section 1.183-            
          2(b), Income Tax Regs., and based on the record as a whole, we              
          conclude that the charter activity was not an activity entered              
          into for profit, and we have so found.                                      
               C.  Petitioner Had No Objective To Make a Profit                       
               The regulations provide that “Although a reasonable                    
          expectation of profit is not required, the facts and                        
          circumstances must indicate that the taxpayer entered into the              
          activity * * * with the objective of making a profit.”  Sec.                
          1.183-2(a), Income Tax Regs.                                                
               We conclude that, although petitioner certainly would have             
          liked Ballard Marine to make a profit, that was not his objective           
          in organizing and operating Ballard Marine.                                 
               In determining petitioner’s objective in organizing and                
          operating Ballard Marine, we have the benefit of neither a                  
          statement of corporate purpose (in Ballard Marine’s articles of             
          incorporation) nor a formal business plan.  Nevertheless,                   

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