Derril O. Lamb, Jr. and Joyce Lamb - Page 13

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            in the tuna fishing business.  Between 1983 and 1987, Mr. Lamb                                
            was not engaged in the business of fishing but continued to go                                
            out on the sea with young fishermen who sought to learn from Mr.                              
            Lamb the skill of harpooning tuna.  In 1988, rising tuna prices                               
            enticed Mr. Lamb to purchase the Lu-Joy and return to the sea to                              
            harpoon tuna.                                                                                 

                  (3)  Time and Effort Expended by the Taxpayer in Carrying on                            
            the Activity                                                                                  

                  On brief, respondent points out that Mr. Lamb’s log                                     
            indicates that he made only 15 and 12 fishing trips in 1990 and                               
            1991, respectively.  However, Mr. Lamb testified that although                                
            the tuna fishing season in Maine typically runs from June 15                                  
            through September 30, there are usually only 15 to 20 days per                                
            season when the weather conditions are such that it would be                                  
            worthwhile to go out on the sea to harpoon tuna.  As Mr. Lamb                                 
            testified:  “The rest of the time you could go for a boat ride,                               
            you could go hope you could see a fish jump, [but] you wouldn’t                               
            have a ghost of a chance of catching a fish, and I just wouldn’t                              
            go those days.”                                                                               

                  (4)  Expectation That Assets Used in the Activity May                                   
            Appreciate in Value                                                                           

                  There is no evidence in the record that Mr. Lamb held the                               
            Lu-Joy with any expectation that it would appreciate in value.                                






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Last modified: May 25, 2011