James R. and Myrtice L. Peacock - Page 14

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          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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