John Shackelford Fairbanks - Page 6

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               Whether a taxpayer is engaged in the activity for profit               
          depends on whether he undertook this activity with an actual and            
          honest objective of making a profit.  See Elliott v.                        
          Commissioner, 90 T.C. 960, 970 (1988), affd. without published              
          opinion 899 F.2d 18 (9th Cir. 1990).  Whether a taxpayer had an             
          actual and honest profit objective is a question of fact to be              
          resolved from all relevant facts and circumstances.  See 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              
          Thomas v. Commissioner, 84 T.C. 1244, 1269 (1985), affd. 792 F.2d           
          1256 (4th Cir. 1986).                                                       
               Section 183(d) provides a rebuttable presumption that a                
          taxpayer is engaged in an activity for profit if the gross income           
          derived from the activity exceeds the deductions attributable to            
          the activity for 3 or more of the taxable years in a 5-year                 
          period.  Petitioner contends that he qualifies for such a                   
          presumption by arguing that Fairbanks is only the latest in a               
          series of businesses started in 1986 by petitioner and his ex-              
          spouse Deborah M. Fairbanks (Ms. Fairbanks) while they were                 
               Beginning in 1986, Ms. Fairbanks apparently conducted                  
          various profitable business activities which were eventually                
          consolidated under the name Integrative Learning Designs.                   

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