- 30 -
Application - Aircraft Rental
Turning then to whether petitioner intended to make a profit
through the rental of his personal aircraft, analysis of the
surrounding circumstances again establishes that he did not.
Although the parties presented far less evidence and
argumentation on this issue than with respect to the ranch, those
of the nine factors to which the record does speak fail to paint
the picture of a profit-driven enterprise.
First, regarding businesslike manner, petitioner did not
testify to maintaining books and records for his rental
operations that would allow either for regular and meaningful
evaluation of the enterprise’s financial health or for the making
of informed business decisions. On the contrary, the only
business decision addressed by the parties at trial or on brief
appears to have been made in a strikingly unbusinesslike manner.
Petitioner set the rate he charged for use of his aircraft by
calling other businesses, inquiring what they charged, and
establishing a comparable fee. He seems to have undertaken no
analysis whatsoever of his own expenses, his probable balance of
rental versus personal use, or his likely break-even point. It
is doubtful that most serious entrepreneurs would simply charge
what competitors charge without ever calculating whether their
Page: Previous 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 NextLast modified: May 25, 2011