Charles A. Ballard - Page 22

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          the taxpayer entered into the activity for profit.  For the most            
          part, we find those cases to involve facts that are materially              
          distinguishable from the facts at hand.  In Feldman v                       
          Commissioner, supra, the taxpayer purchased a boat with a proven            
          charter record and an established clientele; the taxpayer made no           
          personal use of the boat; he negotiated a favorable management              
          agreement, with a guaranteed minimum level of revenue.  In                  
          Dickson v. Commissioner, supra, the taxpayer leased the boat to a           
          charter agency for guaranteed annual payments and made limited              
          personal use of the boat.  In McLarney v. Commissioner, supra,              
          the taxpayer regularly spent a substantial amount of time and               
          energy running the business; the taxpayer changed the mode of               
          operation to increase profitability; his personal use of the boat           
          was small in comparison to the number of charters.  In Zwicky v.            
          Commissioner, supra, the taxpayer devoted substantial amounts of            
          time to the charter operation; the taxpayer engaged in numerous             
          promotional activities to gain charters; the taxpayer made                  
          minimal recreational use of the boat.  Slawek v. Commissioner,              
          supra, most closely resembles the case at hand in that there we             
          found that (1) the taxpayers made no real investigation of the              
          charter boat business before undertaking their charter activity,            
          and (2) they made no projections of income and expenses as a                
          basis for estimating whether or not the activity could be                   
          profitable.  We also found, however, that they advertised in a              
          national newspaper, the Wall Street Journal, and that they made             

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