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carrying on the activity; (4) the expectation that assets used in
the 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) the
presence of elements of personal pleasure or recreation. Sec.
1.183-2(b), Income Tax Regs.
(1) Manner in Which the Taxpayer Carries on the Activity
Respondent argues that Mr. Lamb did not maintain adequate
books and records for his tuna fishing activity. We disagree.
Mr. Lamb established a separate bank account (the Lu-Joy account)
at Casco Northern Bank in Bowdoinham, Maine, which enabled him to
segregate the income and expenses from his tuna fishing
activity.4 In addition, Mr. Lamb maintained a log recording the
weather and tide conditions on the days that he fished, as well
as the loran coordinates of each tuna that Mr. Lamb spotted so
that he could return to that location in the future to fish for
tuna.
Respondent also contends that Mr. Lamb did not conduct his
tuna fishing activity in a businesslike manner, because Mr. Lamb
4We note that respondent has not argued that Mr. Lamb has
failed to substantiate the amount and nature of any of the
expenses he claimed in connection with his tuna fishing activity.
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