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generally creates a presumption that a taxpayer is engaged in an
activity for profit if the gross income that such taxpayer
derives from that activity exceeds the deductions of that tax-
payer that are attributable to that activity for 3 out of 5
consecutive taxable years. However, section 183(d) does not
apply to petitioners because there is no evidence in the record
to show that petitioner's automobile repair activity ever satis-
fied that provision.4
We turn now to petitioners' argument that petitioner engaged
in his automobile repair activity with the requisite profit
objective under section 183 and that therefore petitioners
are entitled to deduct the Schedule C loss that they are claiming
for 1993. Section 183 allows only specified deductions unless an
activity is engaged in for profit. Section 183(c) defines an
4 We note that sec. 12.9(a) and (b), Temporary Income Tax Regs.,
39 Fed. Reg. 9947 (Mar. 15, 1974), generally permits a taxpayer
to elect to postpone a determination by respondent with respect
to whether the presumption described in sec. 183(d) applies to an
activity of such taxpayer until after the first 5 taxable years
during which that taxpayer is engaged in any such activity. Such
an election generally must be made within the first 3 years after
the due date of such taxpayer's return, without regard to
extensions, but not later than 60 days after such taxpayer
receives written notice from a District Director that that
district director proposes to disallow deductions attributable to
an activity. Sec. 12.9(c), Temporary Income Tax Regs., 39 Fed.
Reg. 9948 (Mar. 15, 1974). Petitioners appear to have prepared
such an election, but they have failed to show that they filed it
with respondent. Indeed, they admit that Mr. Grenville-Jones
retained that election in his files.
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