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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
married.
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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