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Petitioners bear the burden of proving that PMSI entered into and
remained in the fishing activity with the requisite profit
objective.6 Rule 142(a)(1); Welch v. Helvering, 290 U.S. 111,
115 (1933); Beck v. Commissioner, 85 T.C. 557, 570 (1985).
Section 183 applies at the corporate level with respect to the
activities of an S corporation. Sec. 1.183-1(f), Income Tax
Regs. For that purpose, however, Ms. Peacock’s intent is
attributable to PMSI, her wholly owned S corporation. See Eppler
v. Commissioner, 58 T.C. 691, 696-699 (1972), affd. without
published opinion 486 F.2d 1406 (7th Cir. 1973); Butler v.
Commissioner, 36 T.C. 1097 (1961); see also Sousa v.
Commissioner, T.C. Memo. 1989-581 (and the cases cited therein).
Section 1.183-2(b), Income Tax Regs., sets forth a
nonexclusive list of factors to be considered when ascertaining a
taxpayer’s intent. These factors are: (1) The manner in which
the taxpayer carries on the activity; (2) the expertise of the
taxpayer or his advisers; (3) the time and effort expended by the
taxpayer in carrying on the activity; (4) the expectation that
assets used in the activity may appreciate in value; (5) the
success of the taxpayer in carrying on other similar or
dissimilar activities; (6) the taxpayer’s history of income or
losses with respect to the activity; (7) the amount of occasional
6 Sec. 183(d) provides a statutory reversal of the burden of
proof if petitioners meet specified criteria. Petitioners do not
meet those criteria.
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