-12-
petitioners are not entitled to the claimed investment tax credit
for 1984.
b. Profit Objective
In order to qualify for depreciation and other expense
deductions with respect to the container, petitioners must
demonstrate that the container was used in a trade or business or
was held for the production of income. Secs. 162, 167, 212.
To be entitled to a depreciation deduction, petitioner must
prove that he had “an actual and honest objective of making a
profit.” Dreicer v. Commissioner, 78 T.C. 642, 646 (1982), affd.
without opinion 702 F.2d 1205 (D.C. Cir. 1983). For this purpose,
“profit” means economic profit, independent of tax savings.
Surloff v. Commissioner, 81 T.C. 210, 233 (1983). There is no
requirement that a reasonable expectation of profit exist. Elliott
v. Commissioner, 90 T.C. 960, 970 (1988), affd. without published
opinion 899 F.2d 18 (9th Cir. 1990). The determination of whether
an activity is engaged in for profit is made by reference to
objective standards, taking into account all the facts and
circumstances of each case. Brannen v. Commissioner, 78 T.C. 471,
506 (1982), affd. 722 F.2d 695 (11th Cir. 1984). Greater weight is
given to the objective facts than to the taxpayer’s own statements
of intent. Sec. 1.183-2(b), Income Tax Regs.9 A taxpayer bears
9 Sec. 1.183-2(b), Income Tax Regs., sets forth a
nonexclusive list of factors used in determining whether an
activity is engaged in for profit. The regulation lists nine
(continued...)
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