Estate of David J. Dickerson, Deceased, Dorothy Dickerson, Executor and Dorothy Dickerson, et al. - Page 17

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          are entitled to the claimed deductions.  Respondent is sustained            
          to the extent petitioners deducted loan origination fees above              
          those ratably allocable to the 1989 tax year.                               
          Christmas Tree Farm                                                         
               The Dickersons claimed Schedule C expense deductions with              
          regard to a tree farm business in the amounts of $1,345 and                 
          $1,100 in the 1989 and 1990 tax years, respectively.  The                   
          Dickersons claimed Schedule C losses for the tree farm business             
          in the tax years 1985, 1986, 1987, 1988, 1989, and 1990.  The               
          Dickersons reported zero receipts with regard to the tree farm              
          business in the 1985, 1986, 1987, 1988, and 1989 tax years.  The            
          Dickersons reported $800 in receipts with regard to the tree farm           
          business in the 1990 tax year.  Respondent argues that the                  
          Dickersons are not entitled to the claimed deductions because the           
          tree farm business was not engaged in for profit within the                 
          meaning of section 183.  This is a factual inquiry requiring a              
          weighing of the evidence in the record.  Petitioners contend that           
          they entered into and carried on the tree farm activity with the            
          requisite profit objective and that, as a result, the deductions            
          are allowed under section 162 or section 212.                               
               Section 183(a) provides generally that, if an activity is              
          not engaged in for profit, no deduction attributable to such                
          activity shall be allowed except as provided in section 183.                
               Section 183(c) defines an “activity not engaged in for                 
          profit” as “any activity other than one with respect to which               

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