- 26 -
a bona fide profit objective must exist. See Keanini v.
Commissioner, 94 T.C. 41, 46 (1990); Hulter v. Commis-
sioner, 91 T.C. 371, 393 (1988); Beck v. Commissioner, 85
T.C. 557, 569 (1985); Dreicer v. Commissioner, supra;
Golanty v. Commissioner, 72 T.C. 411, 425-426 (1979), affd.
without published opinion 647 F.2d 170 (9th Cir. 1981);
sec. 1.183-2(a), Income Tax Regs. "Profit" in this context
means economic profit, independent of tax savings. See
Antonides v. Commissioner, 91 T.C. 686, 694 (1988), affd.
893 F.2d 656 (4th Cir. 1990); Landry v. Commissioner, 86
T.C. 1284, 1303 (1986).
Whether a taxpayer engages in an activity with the
requisite profit motive is a question of fact to be
resolved on a consideration of all the facts and circum-
stances in the record. See Lemmen v. Commissioner, 77
T.C. 1326, 1340 (1981); Allen v. Commissioner, supra at
34; sec. 1.183-2(b), Income Tax Regs. Petitioners bear
the burden of proving that they engaged in their farming
activity with the requisite profit motive, and greater
weight is given to objective facts than to the taxpayer's
mere statement of intent. See Rule 142(a); Siegel v.
Commissioner, 78 T.C. 659, 699 (1982); Churchman v.
Commissioner, 68 T.C. 696, 701 (1977); sec. 1.183-2(a),
Income Tax Regs.
Page: Previous 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 NextLast modified: May 25, 2011