Raymond B. and Joan M. Marvin - Page 7




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          Fuchs v. Commissioner, 83 T.C. 79, 97-98 (1984); Dreicer v.                 
          Commissioner, 78 T.C. 642, 645 (1982), affd. without opinion 702            
          F.2d 1205 (D.C. Cir. 1983); sec. 1.183-2(a), Income Tax Regs.               
          Although a reasonable expectation of profit is not required, the            
          taxpayer's profit objective must be bona fide.  See Hulter v.               
          Commissioner, 91 T.C. 371, 393 (1988); Beck v. Commissioner, 85             
          T.C. 557, 569 (1985).  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 Carter v.                        
          Commissioner, 645 F.2d 784, 786 (9th Cir. 1981), affg. T.C. Memo.           
          1978-202; Hulter v. Commissioner, supra at 393; 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              
          Beck v. Commissioner, supra at 570; Thomas v. Commissioner, 84              
          T.C. 1244, 1269 (1985), affd. 792 F.2d 1256 (4th Cir. 1986); sec.           
          1.183-2(a), Income Tax Regs.                                                
               Section 1.183-2(b), Income Tax Regs., provides a                       
          nonexclusive list of factors that should be considered in                   
          determining whether an activity is engaged in with the requisite            
          profit objective.  The nine factors are:  (1) The manner in which           
          the taxpayer carries on the activity; (2) the expertise of the              
          taxpayer or his or her advisers; (3) the time and effort expended           
          by the taxpayer in carrying on the activity; (4) the expectation            






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