Geraldine H. Pearson - Page 8

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  1988    3,825       25,426            21,601            5,803            27,404     
  1989   11,028       42,260            31,232            5,508            36,740     
  1990    1,622       28,744            27,122            6,138            33,260     
  1991   39,499       42,042             2,543            8,550            11,093     
  1992   17,480       37,227            19,747           10,307            30,054     
  1993    6,985       24,341            17,356            6,107            23,463     
  112,774      291,260           178,486           65,692           244,178           
          Petitioner lost money on her farm in 36 of the 37 years that she            
          operated it.                                                                
                                       OPINION                                        
          A.   Requirement That Petitioner Have a Profit Objective                    
               Section 183(c) disallows certain deductions for activities             
          not conducted for profit.  In this context, "profit" means                  
          economic profit, independent of tax savings.  Herrick v.                    
          Commissioner, 85 T.C. 237, 255 (1985); Seaman v. Commissioner,              
          84 T.C. 564, 588 (1985); Surloff v. Commissioner, 81 T.C. 210,              
          233 (1983).  An activity is conducted for profit if the taxpayer            
          engages in the activity with an actual and honest profit                    
          objective.  Surloff v. Commissioner, supra; Dreicer v.                      
          Commissioner, 78 T.C. 642, 645 (1982), affd. without published              
          opinion 702 F.2d 1205 (D.C. Cir. 1983).  The burden of proof is             
          on the taxpayer.  Golanty v. Commissioner, 72 T.C. 411, 426                 
          (1979), affd. without published opinion 647 F.2d 170 (9th Cir.              
          1981).  We give greater weight to objective facts than to a                 
          taxpayer's statement of intent.  Cherin v. Commissioner, 89 T.C.            
          986, 992 (1987); Seaman v. Commissioner, supra.                             
          B.   Whether Petitioner Had a Profit Objective                              
               Section 1.183-2(b), Income Tax Regs., lists nine factors we            
          may consider in deciding whether an activity is engaged in for              




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