- 14 - profit intent. Constant had only participated in four or five tournaments during 1992 through 1993, and had minimal tournament earnings in 1994 through 1996. What is particularly telling is Dr. DeMattia's reaction to Constant's new golf instructor position. Although Constant's new responsibilities impaired his ability to play in tournaments, and hence generate income from tournament winnings, Dr. DeMattia's only action in response thereto was to ensure that Constant's separate earnings were not covered by the sponsorship agreements. If there had been the requisite profit intent, all of the aforementioned facts should have inspired corrective action on Dr. DeMattia's part. This factor supports respondent's determinations. 2. Expertise of Petitioners or their Advisors A taxpayer's expertise, research, and study of an activity, as well as his or her consultation with experts, may be indicative of a profit intent. Sec. 1.183-2(b)(2), Income Tax Regs. Respondent argues that Dr. DeMattia lacked the requisite expertise to conduct the activity with a profit intent. In support, respondent cites the following facts: (1) Dr. DeMattia had never entered into any other sponsorship agreement with another professional athlete; (2) he had never acted as a sports agent; and (3) he had no formal training as a golf instructor.Page: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Next
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