Hugh T. Brown, Jr., and Kristi L. Brown - Page 14




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          portable mining device that allowed him to travel long distances            
          on foot to remote mining locations in the desert.                           
               Petitioner relied on both his own expertise about mining in            
          general and his research concerning gold mining specifically.               
          Petitioner did not seek professional advice on the business and             
          economic aspects of gold mining.  We view his failure to seek               
          such professional advice before commencing his gold mining                  
          activity as counterbalancing his significant experience in mining           
          in general.  We, therefore, conclude that this factor is neutral.           
               3.  Petitioner’s Time and Effort Devoted to the Activity               
               The fact that a taxpayer devotes much of his personal time             
          and effort to carrying on an activity may indicate an intention             
          to derive a profit, particularly if the activity does not have              
          substantial personal or recreational aspects.  See Daley v.                 
          Commissioner, T.C. Memo. 1996-259; sec. 1.183-2(b)(3), Income Tax           
          Regs.  A taxpayer’s withdrawal from another occupation to devote            
          most of his energies to the activity may be evidence that the               
          activity was engaged in for profit.  Sec. 1.183-2(b)(3), Income             
          Tax Regs.                                                                   
               Both parties agree that petitioner devoted a significant               
          amount of time and effort to his gold mining activity.  During              
          the years in issue, petitioner compressed a 40-hour workweek                
          schedule into 4 days.  Because of this arrangement of his                   
          employment, he was able to spend 3 consecutive days each week               






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