- 19 - under the circumstances to demonstrate that the activity was carried on for profit. Although Mr. Abbene hired an accountant to maintain Blue Ribbon's books and records, those books and records may represent nothing more than a conscious attention to detail. Golanty v. Commissioner, 72 T.C. 411, 430 (1979), affd. without published opinion 647 F.2d 170 (9th Cir. 1981). In the instant case there has been no showing that the books and records were kept for the purpose of cutting expenses, increasing profits, or evaluating the overall performance of the operation. Id. Mr. Abbene testified that he reviewed Blue Ribbon's records, but he has failed to show that he used them to improve the operation of the enterprise. Id. Additionally, petitioners concede that, despite mounting losses, Blue Ribbon was operated in substantially the same manner from the time it was formed throughout all the years in issue. We believe that if profit had been the motive, Mr. Abbene would have either adopted new techniques or abandoned unprofitable methods in an effort to improve Blue Ribbon's profitability. Accordingly, we conclude that petitioners failed to establish that Mr. Abbene operated Blue Ribbon in a businesslike manner. 2. The Expertise of the Taxpayer or the Taxpayer's Advisers A taxpayer's expertise, research, and study of an activity, as well as his consultation with experts may be indicative of a profit motive. Sec. 1.183-2(b)(2), Income Tax Regs.Page: Previous 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Next
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