- 8 -
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)
elements of personal pleasure or recreation. No single factor is
controlling, but rather it is an evaluation of all the facts and
circumstances in the case, taken as a whole, which is
determinative. See Weber v. Commissioner, 103 T.C. 378, 387
(1994), affd. per curiam 60 F.3d 1104 (4th Cir. 1995).
Petitioner alleges that he conducted his consulting activity
in a businesslike manner, but this allegation is belied by the
facts. We note that (1) petitioner did not keep
contemporaneously written business or marketing plans, (2)
petitioner did not keep income or expense projections for his
consulting activity and failed to keep books and records
detailing Fairbanks' financial information, and (3) petitioner
failed to maintain a separate checking account or separate
finances for his consulting activity during the year in issue.1
Additionally, though petitioner was aware that Fairbanks had
generated no gross receipts for the 1994, 1995, and 1996 tax
years, petitioner did not appreciably change his method of
1 Petitioner started a commercial checking account for
Fairbanks in 1996.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011