19 Petitioner did not present any evidence that he had been involved or demonstrated any success in any similar or dissimilar type of activity. 6. The Taxpayer’s History of Income or Losses With Respect to the Activity Although no one factor is determinative of the taxpayer’s objective to make a profit, a record of substantial losses, and the unlikelihood of achieving a profitable operation is highly probative of the taxpayer’s true objective. Golanty v. Commissioner, 72 T.C. at 411; sec. 1.183-2(b)(6), Income Tax Regs. Petitioner’s main argument in this case is that the activities of a State agency prevented him from operating a profitable activity during 1990. Petitioner’s difficulties with DHS resulted in prolonged delay, and, ultimately, in the seizure of significant portions of petitioner’s inventory that was allegedly hazardous waste. Petitioner knew or should have known he was engaged in a business that involved dangerous or hazardous chemicals. Performing metal mining and refining operations required adherence, at least to a degree, to minimal environmental regulations, which represented a cost of doing business in this particular field. Petitioner did not comply, and when confronted with the environmental regulations, he chose to engage in lengthy litigation. The dispute with DHS was not an unforeseenPage: Previous 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Next
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