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Petitioner hired advisers, including geologists and
accountants, and sought advice from Government officials
regularly. See Jorgenson v. Commissioner, T.C. Memo. 2000-38.
For example, petitioner used Mr. Cruson on at least two occasions
to advise him on the Tinnell Prospect and the Quartette Mine. In
1999, petitioner hired a geologist to prepare a report detailing
the occurrence of uncommon variety materials on petitioner’s
claims in the Newberry Mountains in southern Nevada.
Petitioner also employed one of his sons at the mine. The
evidence demonstrates that L.R. Tinnell has a thorough
understanding of both the technical and business aspects of
mining. L.R. Tinnell graduated from the University of Nevada,
Las Vegas, and also took a graduate-level course in economic
geology. L.R. Tinnell was responsible for dealing with
Government agencies, such as the U.S. Fish and Wildlife Service,
the Nevada Department of Environmental Protection, and the Mine
Safety and Health Administration, on behalf of petitioner. L.R.
Tinnell was also in charge of underground mining and tests,
negotiations with Government agencies, and coordinating assays.
This factor favors petitioner.
3. Petitioner’s Time and Effort Devoted to the
Activity
The fact that a taxpayer devotes personal time and effort to
carry on an activity may indicate an intention to derive a
profit, particularly where there are no substantial personal or
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