- 8 -
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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