Larry Minnick and Charla Minnick v. Commissioner - Page 7




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          requirements of that section.                                               
               The test to determine whether a taxpayer conducted an                  
          activity for profit is whether he or she engaged in the activity            
          with an actual and honest objective of earning a profit.  Keanini           
          v. Commissioner, 94 T.C. 41, 46 (1990); Dreicer v. Commissioner,            
          78 T.C. 642, 644-645 (1982), affd. without published opinion 702            
          F.2d 1205 (D.C. Cir. 1983); sec. 1.183-2(a), Income Tax Regs.               
          Although a reasonable expectation of profit is not required, the            
          taxpayer’s profit objective must be bona fide, as determined from           
          a consideration of all the facts and circumstances.  Keanini v.             
          Commissioner, supra; Dreicer v. Commissioner, supra at 645;                 
          Golanty v. Commissioner, 72 T.C. 411, 425-426 (1979), affd.                 
          without published opinion 647 F.2d 170 (9th Cir. 1981); Bessenyey           
          v. Commissioner, 45 T.C. 261, 274 (1965), affd. 379 F.2d 252 (2d            
          Cir. 1967).  More weight is given to objective facts than to the            
          taxpayer’s statement of his or her intent.  Engdahl v.                      
          Commissioner, 72 T.C. 659, 666 (1979); sec. 1.183-2(a), Income              
          Tax Regs.                                                                   
               The regulations under section 183 provide nine nonexclusive            
          factors to be used in determining whether a taxpayer is                     
          conducting an activity with the intent to make a profit.  Sec.              
          1.183-2(b), Income Tax Regs.  The factors are: (1) The manner in            
          which the taxpayer carried on the activity; (2) the expertise of            
          the taxpayer or his or her advisers; (3) the time and effort                






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