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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.
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