- 6 - 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 married. Beginning in 1986, Ms. Fairbanks apparently conducted various profitable business activities which were eventually consolidated under the name Integrative Learning Designs.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011