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crops or the years in which they did not plant crops.
Moreover, it appears that petitioners received "disaster
relief payments" during the years at issue which may have
ameliorated petitioners' losses from any such drought.
Finally, while petitioners introduced evidence that
farmers in the area suffered from "deer depredation",
they introduced no evidence that damage caused by deer
contributed to their losses. To the contrary, the record
suggests that there were salt licks on the property to
attract deer and other animals.
(7) Amount of Occasional Profits
Section 1.183-2(b)(7), Income Tax Regs., provides
that occasional profits may evidence a profit motive.
Petitioners' farming activity never generated a profit
during any of the years in issue.
(8) Financial Status of the Taxpayer
Section 1.183-2(b)(8), Income Tax Regs., provides as
follows:
The fact that the taxpayer does not have
substantial income or capital from sources
other than the activity may indicate that an
activity is engaged in for profit. Substantial
income from sources other than the activity
(particularly if the losses from the activity
generate substantial tax benefits) may indicate
that the activity is not engaged in for profit
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