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The record does not show how petitioner was involved in his
family’s farm, that his efforts contributed to its success, or
that he successfully engaged in any other activity similar to his
farm. Statements in petitioner’s brief regarding advice he may
have given to others are not supported by the record. We do not
base findings of fact on factual assertions first made in a
posttrial brief. See Rule 143(b); United States v. Genser, 582
F.2d 292, 311 (3d Cir. 1978); Niedringhaus v. Commissioner, 99
T.C. 202, 214 n.7 (1992); Viehweg v. Commissioner, 90 T.C. 1248,
1255 (1988). This factor favors respondent.
6. Taxpayer's History of Income or Losses
A history of substantial losses may indicate that the
taxpayer did not conduct the activity for profit. Golanty v.
Commissioner, supra at 427; sec. 1.183-2(b)(6), Income Tax Regs.
Losses during the initial stage of an activity do not necessarily
indicate that the activity was not conducted for profit. Engdahl
v. Commissioner, 72 T.C. at 669; sec. 1.183-2(b)(6), Income Tax
Regs.
Petitioner received no farm income and he incurred farm
losses in 1995, 1996, and 1997. Petitioner contends that he
expected to incur losses in those years because the farm had been
neglected before he moved there in 1991. Even if he expected
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