- 7 -
circumstances. Elliott v. Commissioner, 84 T.C. 227, 236 (1985),
affd. without published opinion 782 F.2d 1027 (3d Cir. 1986);
sec. 1.183-2(b), Income Tax Regs. Greater weight is given to
objective facts than to a taxpayer’s statement of intent.
Elliott v. Commissioner, supra at 236-237; sec. 1.183-2(a),
Income Tax Regs.
Section 1.183-2(b), Income Tax Regs., provides the following
nonexclusive list of factors which normally should be considered
in determining whether an activity is engaged in for profit: (1)
The manner in which the taxpayer carried 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 the 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 profits, if any, which are earned; (8) the
financial status of the taxpayer; and (9) elements of personal
pleasure or recreation. No single factor, nor the existence of
even a majority of the factors, is controlling, but rather it is
an evaluation of all the facts and circumstances in the case,
taken as a whole, which is determinative.
Although petitioners reported the writing activity and the
handyman activity as a single business on their Schedule C, we
conclude that they are two distinct activities and must be
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011