James Tinnell - Page 10

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               Section 1.183-2(b), Income Tax Regs., sets forth a                     
          nonexhaustive list of factors that courts often consider in                 
          deciding whether a profit objective exists.  No single factor and           
          not even a majority of the factors is controlling.  Id.  Rather,            
          the factors are evaluated in order to arrive at an informed                 
          conclusion based on all the evidence regarding whether the                  
          requisite profit objective existed.  Golanty v. Commissioner,               
               We considered the factors set forth in section 1.183-2(b),             
          Income Tax Regs., and concluded that some factors favored                   
          respondent and some factors favored petitioner.  One of the                 
          factors that favored respondent was petitioner’s history of                 
          income or loss.  Petitioner had engaged in his mining activity              
          since at least 1980 and had claimed substantial net operating               
          losses with respect to his mining activity in every year from               
          1989 through and including the years at issue.  A record of                 
          substantial losses over many years is an important factor bearing           
          on a taxpayer’s true intent.  Golanty v. Commissioner, supra at             
          426.  We also found that petitioner failed to prove that he                 
          maintained accurate and businesslike records, a fact that is                
          relevant in determining whether the manner in which petitioner              
          conducted his activity is consistent with an intent to make a               

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