Gilbert J. Arevalo - Page 6




                                        - 6 -                                         
          1978-202; Hulter v. Commissioner, supra at 393; Golanty v.                  
          Commissioner, 72 T.C. 411, 426 (1979), affd. without published              
          opinion 647 F.2d 170 (9th Cir. 1981).  Greater weight is given to           
          objective facts than to a taxpayer's statement of intent.  See              
          Beck v. Commissioner, supra at 570; Thomas v. Commissioner, 84              
          T.C. 1244, 1269 (1985), affd. 792 F.2d 1256 (4th Cir. 1986); sec.           
          1.183-2(a), Income Tax Regs.                                                
               Section 1.183-2(b), Income Tax Regs., provides a                       
          nonexclusive list of factors that should be considered in                   
          determining whether an activity is engaged in with the requisite            
          profit objective.  The nine factors are:  (1) The manner in which           
          the taxpayer carries on the activity; (2) the expertise of the              
          taxpayer or his or her advisers; (3) the time and effort expended           
          by the taxpayer in carrying on the activity; (4) the expectation            
          that the assets used by the taxpayer in the activity may                    
          appreciate in value; (5) the success of the taxpayer in carrying            
          on other similar or dissimilar activities; (6) the taxpayer's               
          history of income or losses with respect to the activity; (7) the           
          amount of occasional profits, if any, which are earned; (8) the             
          financial status of the taxpayer; and (9) whether elements of               
          personal pleasure or recreation are involved.  No single factor,            
          nor the existence of even a majority of the factors, is                     
          controlling, but rather it is an evaluation of all the facts and            
          circumstances in the case, taken as a whole, which is                       






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  Next

Last modified: May 25, 2011