James R. and Myrtice L. Peacock - Page 19

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               the water and runs right into the side of a * * *                      
               cruise ship.  Bam!                                                     
                    Takes his bill off, knocks himself out, and he’s                  
               just kind of floating on top of the water, flopping.                   
               They backed down on him, just nice and easy, reach over                
               and get him and put in the boat.  $150,000.  Boom!                     
                    Just that easy, because the fish knocked itself                   
               out.  They would have never got him in.  We had a                      
               683-pound fish.  That’s a * * * fish.  But because of                  
               what he had caught that morning and what he caught that                
               afternoon, their combined weight was more than the                     
               weight of our fish.                                                    
                    They won the daily and the tournament.  We came in                
               second in the tournament, with a trophy fish, 683                      
               pounds.  All because this cruise ship just happened, *                 
               * * it just happened to come by as this fish, who is                   
               fearing for his life, is running just as fast as he                    
               can, runs into the side of the boat. * * *                             
               We give petitioners’ uncorroborated testimony little weight            
          in determining whether PMSI had the requisite profit objective.             
          Petitioners testified that they had a profit objective as to the            
          fishing activity.  Mr. Peacock, in particular, as a successful              
          businessperson, showed some appreciation for making a profit.  In           
          determining whether PMSI’s participation in the fishing activity            
          was permeated with the honest and actual profit objective,                  
          however, we give greater weight to the nine objective factors set           
          forth above than we do to petitioners’ expressions of subjective            
          intent.  Osteen v. Commissioner, 62 F.3d at 358; Keanini v.                 
          Commissioner, 94 T.C. 41, 46 (1990); Dreicer v. Commissioner, 78            
          T.C. at 645; sec. 1.183-2(a), Income Tax Regs.  We turn to those            
          factors and discuss them seriatim.                                          

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