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Martin v. Commissioner, 50 T.C. 341, 364 (1968); Rand v.
Commissioner, 34 T.C. 1146, 1149-1150 (1960).
We also note that during 1990 petitioner reported
substantial income from sources other than his activity
with respect to the Cloudia. See sec. 1.183-2(b)(8),
Income Tax Regs. He reported gross income from his legal
practice in the amount of $157,391, and a net profit from
that activity in the amount of $78,253. In addition,
petitioner reported capital gains of $75,139 from the sale
of 2709 NW 12th and 1809 Carey Place, two of his rental
properties, ordinary income of $3,612 from the sale of
those two rental properties, and a loss of $3,456 from the
sale of the “Edmond Lot”. In sum, for the 1990 tax year,
petitioner realized income of $153,548 from sources other
than the rental of the Cloudia.
Finally, the record suggests that petitioner derived
personal enjoyment from his activity with respect to the
Cloudia. See sec. 1.183-2(b)(9), Income Tax Regs.
Petitioner testified that ever since he was young he
wanted to be involved with boats, and that the first time
he stepped onto the Cloudia he “felt like Errol Flynn”.
Petitioner also testified that he had built two other
sailboats, one which he sold, and one which he retained
for recreational purposes.
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