Anthony J. McCarthy - Page 4




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            v. Commissioner, supra at 46; Dreicer v. Commissioner, supra at                            
            645; Golanty v. Commissioner, 72 T.C. 411, 426 (1979), affd.                               
            without published opinion 647 F.2d 170 (9th Cir. 1981); Bessenyey                          
            v. Commissioner, 45 T.C. 261, 274 (1965), affd. 379 F.2d 252 (2d                           
            Cir. 1967).                                                                                
                  Whether petitioner engaged in managing and promoting his                             
            son's (Benjamin) motocross racing activity with an actual and                              
            honest objective of earning a profit must be determined by                                 
            considering all the facts and circumstances.  See Golanty v.                               
            Commissioner, supra at 426; sec. 1.183-2(a) and (b), Income Tax                            
            Regs.  More weight is given to objective facts than to                                     
            petitioner's statement of his intent.  See Engdahl v.                                      
            Commissioner, 72 T.C. 659, 666 (1979); sec. 1.183-2(a), Income                             
            Tax Regs.                                                                                  
                  In deciding whether petitioner engaged in managing                                   
            Benjamin's motocross racing activity for profit, we apply the                              
            nine factors listed in section 1.183-2(b), Income Tax Regs.  The                           
            factors are:  (1) The manner in which the taxpayer carried 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 that the assets                              
            used in 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 loss with                              






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