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generally, on all of the facts and circumstances of the
record, and specifically, on the factors set forth in
section 1.183-2(b), Income Tax Regs.
Petitioner acknowledged during his testimony that he
was not businesslike in his approach to the activity. See
sec. 1.183-2(b)(1), Income Tax Regs. He did not maintain
receipts of his cash expenditures. He did not establish
a bank account for the activity. He did not maintain any
books and records for the activity. He did not advertise
the availability of the vessel.
We are skeptical about petitioner's testimony con-
cerning his alleged intent for acquiring and holding the
Cloudia. We find it difficult to believe that petitioner,
an attorney, would pay $110,000 for a sailboat without
first determining whether it was seaworthy and whether
it could be used for its intended purpose. We note that
petitioner made passing reference during his testimony
to an "initial survey" of the vessel, but he failed to
introduce any such survey into evidence.
We are also skeptical about petitioner’s assertion
that he held Cloudia for appreciation in value. See sec.
1.183-2(b)(4), Income Tax Regs. Petitioner testified that
as of the time of trial he could sell the Cloudia for
"somewhere" between $125,000 and $150,000. However, as
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