Broadrick R. Moore and Dawn J. Ingram - Page 10




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          manner in which the taxpayer carries on the activity; the                   
          expertise of the taxpayer or his advisers; the time and effort              
          expended by the taxpayer in carrying on the activity; the                   
          expectation that assets used in the activity may appreciate in              
          value; the success of the taxpayer in carrying on other similar             
          or dissimilar activities; the taxpayer’s history of income or               
          losses with respect to the activity; the amount of occasional               
          profits, if any, which are earned; the financial status of the              
          taxpayer; and elements of personal pleasure or recreation.                  
          Sec. 1.183-2(b), Income Tax Regs.  No single factor is                      
          controlling.  Golanty v. Commissioner, 72 T.C. 411, 426 (1979),             
          affd. without published opinion 647 F.2d 170 (9th Cir. 1981).               
          Whether a taxpayer’s activity has been engaged in for profit is             
          determined by taking into account all of the facts and                      
          circumstances of the case.  Sec. 1.183-2(a), Income Tax Regs.               
               Petitioners performed a number of functions which have the             
          superficial indicia of an activity operated for profit.  For                
          example, petitioners testified that they prepared a business plan           
          with the assistance of their C.P.A., and the stated plan was to             
          build a network of downline distributors to generate business               
          volume and ultimately to receive “points” or commissions from               
          Amway.  Petitioners produced a copy of their written goals                  
          (different from their business plan), a one page handwritten                
          document.  Petitioners also maintained and produced a log of                






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