James Tinnell - Page 29




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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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