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Tax Regs. Greater weight is given to objective facts than to
taxpayers’ self-serving statements of intent. Westbrook v.
Commissioner, 68 F.3d 868, 875-876 (5th Cir. 1995), affg. T.C.
Memo. 1993-634; sec. 1.183-2(a), Income Tax Regs. Taxpayers bear
the burden of proving that they engaged in the activity with the
objective of making a profit. Rule 142(a); INDOPCO, Inc. v.
Commissioner, 503 U.S. 79, 84 (1992); Welch v. Helvering, 290
U.S. 111, 115 (1933).6
Based on all of the facts and circumstances of this case, we
are not convinced that petitioner engaged in his “health, wealth
and healing ministry” activity for profit. Indeed, we are not
convinced that petitioner’s activity was much more than a
strategy that was designed generally to lower, if not to
virtually eliminate, petitioner’s Federal income tax liability by
converting personal living expenses into deductible business
6 Applicable to court proceedings arising in connection
with examinations commencing after July 22, 1998, sec. 7491(a)(1)
generally places on the Commissioner the burden of proof with
respect to factual issues relevant to ascertaining the taxpayer’s
liability for income tax. See Internal Revenue Service
Restructuring and Reform Act of 1998 (RRA 1998), Pub. L. 105-206,
sec. 3001(a), (c)(1), 112 Stat. 685, 726, 727. However, sec.
7491(a) only applies if, inter alia, the taxpayer first
introduces credible evidence with respect to such factual issues.
Higbee v. Commissioner, 116 T.C. 438, 442 (2001). We do not
regard petitioner’s conclusory, self-serving, and sometimes
fantastical statements as credible evidence within the meaning of
sec. 7491(a)(1). See Tokarski v. Commissioner, 87 T.C. 74, 77
(1986); see also Sykes v. Commissioner, T.C. Memo. 2001-169.
Accordingly, we decide the issue before us without regard to the
general burden-shifting rule of sec. 7491(a)(1).
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