-18-
only if his videotape activity was engaged in for profit.
Whether an activity is engaged in for profit is determined
under section 162 and section 212 (except insofar as section
183(d) creates a presumption that the activity is engaged in for
profit). See sec. 183(c). Whether an activity is engaged in for
profit turns on whether the taxpayer has an actual and honest
objective of making a profit. Dreicer v. Commissioner, 78 T.C.
642, 645 (1982), affd. without opinion 702 F.2d 1205 (D.C. Cir.
1983); Engdahl v. Commissioner, 72 T.C. 659, 666 (1979); Golanty
v. Commissioner, 72 T.C. 411, 425-426 (1979), affd. without
published opinion 647 F.2d 170 (9th Cir. 1981). Petitioner’s
objective is a question of fact to be determined from all the
facts and circumstances. Polakof v. Commissioner, 820 F.2d 321,
324 (9th Cir. 1987), affg. T.C. Memo. 1985-197; Allen v.
Commissioner, 72 T.C. 28, 34 (1979); Dunn v. Commissioner, 70
T.C. 715, 720 (1978), affd. without published opinion 607 F.2d
995 (2d Cir. 1979), affd. on another issue 615 F.2d 578 (2d Cir.
1980). Mere statements of intent are not determinative.
4(...continued)
SEC. 212. EXPENSES FOR PRODUCTION OF INCOME.
In the case of an individual, there shall be allowed as a
deduction all the ordinary and necessary expenses paid or
incurred during the taxable year--
(1) for the production or collection of income;
(2) for the management, conservation, or maintenance
of property held for the production of income * * *
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