- 17 - No single factor is determinative, and all facts and circumstances, including factors not listed, should be considered. Abramson v. Commissioner, 86 T.C. 360, 371 (1986); sec. 1.183-2(b), Income Tax Regs. Moreover, we do not resolve the issue of profit objective by simply comparing the number of factors indicating profit objective with those indicating the lack of such an objective. Sec. 1.183-2(b), Income Tax Regs. If gross income derived from a horse training or breeding activity for 2 or more taxable years in a period of 7 consecutive taxable years exceeds the deductions attributable to such activity, then the activity is presumed to be an activity engaged in for profit. Sec. 183(d). In the instant case, as gross income from the activity did not exceed deductions from the activity during any of the years in issue, petitioners are not entitled to the presumption that Mr. Abbene's horse-related activities were engaged in for profit. Consequently, we address the aforementioned factors to decide whether Mr. Abbene engaged in his horse-related activities through the operation of Blue Ribbon with an actual and honest profit objective during the years in issue. 1. Manner in Which the Taxpayer Carried On the Activity The fact that the taxpayer carries on the activity in a businesslike manner and maintains complete books and records may indicate that the activity was engaged in for profit. Sec.Page: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Next
Last modified: May 25, 2011