John Shackelford Fairbanks - Page 7

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          Petitioner contends that this Court should view Fairbanks as part           
          of a continuing business enterprise begun in 1986 and therefore             
          take into account tax years prior to 1992 when considering                  
          Fairbanks' history of profits and losses.  Petitioner is                    
          attempting to attribute earlier Schedule C profits purportedly              
          reported by Integrative Learning Designs to Fairbanks' consulting           
          activity and thereby qualify for the section 183(d) presumption.            
               Petitioner has failed, however, to establish any connection            
          between the business activities of Fairbanks and Integrative                
          Learning Designs.  Petitioner started Fairbanks in 1992, and its            
          financial history, therefore, begins from that date.  Since the             
          gross income derived from petitioner's consulting activity does             
          not exceed the deductions attributable to his activity for 3 or             
          more of the taxable years in a 5-year period, petitioner does not           
          qualify for a section 183(d) presumption.                                   
               Since petitioner does not qualify for a presumption that he            
          engaged in his consulting activity for profit under section                 
          183(d), we turn to section 1.183-2(b), Income Tax Regs., which              
          provides the following nonexclusive list of factors which may be            
          considered in determining whether an activity is engaged in with            
          the requisite profit objective:  (1) The manner in which the                
          taxpayer carries on the activity; (2) the expertise of the                  
          taxpayer; (3) the time and effort expended by the taxpayer in               
          carrying on the activity; (4) the expectation that assets used in           

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