Christopher Joseph Bush and Robin Leigh Pickering - Page 8

                                        - 8 -                                         
          activity is engaged in for profit.  These factors are:  (1) The             
          manner in which the taxpayers carry on the activity; (2) the                
          expertise of the taxpayers or their advisers; (3) the time and              
          effort expended by the taxpayers in carrying on the activity; (4)           
          the expectation that assets used in the activity may appreciate             
          in value; (5) the success of the taxpayers in carrying on similar           
          or dissimilar activities; (6) the history of income or losses               
          with respect to the activity; (7) the amount of occasional                  
          profit, if any; (8) the financial status of the taxpayers; and              
          (9) elements of personal pleasure or recreation.  No single                 
          factor, nor the existence of a majority of factors favoring or              
          disfavoring a profit objective, is necessarily controlling.                 
          Cannon v. Commissioner, 949 F.2d 345, 350 (10th Cir. 1991), affg.           
          T.C. Memo. 1990-148.                                                        
               Taking into account the relevant factors outlined above, and           
          considering the facts and circumstances relating to Aspiring                
          Artists’ activities, we are not persuaded that petitioner engaged           
          in those activities with the objective of making a profit.                  
               Petitioner attempted to show that he managed some aspects of           
          Aspiring Artists in a businesslike fashion.  Petitioner                     
          maintained detailed records relating to car expenses including              
          repair costs, gasoline receipts, and miles traveled by his                  
          stepdaughter.  It appears, however, that those records were                 
          maintained primarily to support tax deductions, not as a record             

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  Next

Last modified: May 25, 2011