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v. Commissioner, supra at 426. However, greater weight is
accorded to objective facts and circumstances than to a
taxpayer’s mere statement of intent. See sec. 1.183-2(a), Income
Tax Regs.
A nonexclusive list of factors set forth in section 1.183-
2(b), Income Tax Regs., guides section 183 analysis by indicating
relevant facts and circumstances for consideration: (1) Manner in
which the taxpayer carries on the activity; (2) the expertise of
the taxpayer or his advisers; (3) the time and effort expended by
the taxpayer in carrying on the activity; (4) expectation that
assets used in 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.
Application – Cattle Ranching
1. Manner in which the taxpayer carries on the activity.
Section 1.183-2(b)(1), Income Tax Regs., provides that
carrying on an activity in a businesslike manner may be
indicative of profit objective. The regulations further identify
three practices consistent with businesslike operations: (1)
Maintaining complete and accurate books and records; (2)
conducting the activity in a manner substantially similar to
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