James R. and Janet M. Landrum - Page 10

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          taxpayer or his 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              
          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                      
               These factors are not merely a counting device where the               
          number of factors for or against the taxpayer is determinative.             
          Instead, all facts and circumstances must be taken into account,            
          and more weight may be given to some factors than to others.                
          Dunn v. Commissioner, 70 T.C. 715, 720 (1978), affd. 615 F.2d 578           
          (2d Cir. 1980).  Some of the factors summarized above are                   
          inapplicable to this situation, and others provide little                   
          guidance to the resolution of the question here.  Therefore, we             
          focus on the factors that lead to our decision.                             
               The most significant factors by far in this case are                   
          petitioners’ long history of failure in Amway activities and                
          their almost total lack of gross revenue from those activities              
          during the period in issue.  Three times before the years in                
          issue Mr. Landrum had attempted Amway activity, and Mrs. Landrum            

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