- 14 -
profits, if any; (8) the financial status of the taxpayer; and
(9) elements of personal pleasure or recreation. All facts and
circumstances must be taken into account, and no single factor or
mathematical preponderance of factors is determinative. Osteen
v. Commissioner, supra at 358; Golanty v. Commissioner, 72 T.C.
411, 426 (1979), affd. without published opinion 647 F.2d 170
(9th Cir. 1981); Allen v. Commissioner, 72 T.C. 28, 34 (1979);
sec. 1.183-2(b), Income Tax Regs.
Petitioners rely solely on their testimony to establish all
of their proposed findings of disputed facts. As to the issue at
hand concerning the fishing activity, petitioners testified that
they aimed to earn money from that activity and that they could
win millions of dollars in the activity. According to
petitioners, PMSI would have reported a profit for each subject
year except that two fish got away and one did not. As to the
first fish, Mr. Peacock testified that they would have won
$300,000 in 1995 had it not got away. Mr. Peacock animatedly
described the events surrounding this fish as follows during his
direct testimony at trial:
A. It was in 1995.
Q. And where were you located?
A. Cabo San Lucas, Mexico.
* * * * * * *
A. So about two or three o’clock, we hook up with
this fish and it just takes off running. And Myrtice
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