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motive with respect to the cattle breeding activity considered
separately.
We accordingly proceed to consider whether petitioners had
an actual and honest intent to profit from the cattle activity,
based on the factors enumerated in the regulations.
1. Manner in Which Activity Conducted
The fact that a taxpayer carries on an activity in a
businesslike manner and maintains complete and accurate books and
records may indicate that the activity was engaged in for profit.
See sec. 1.183-2(b)(1), Income Tax Regs. Also, a profit motive
may be indicated by the conduct of the activity in a manner
substantially similar to other activities of the same nature
which are profitable. Id. Both parties proffered expert
witnesses on cattle breeding to evaluate the conduct of Maple
Row’s cattle operations.10
10 With regard to the parties’ cattle breeding experts:
We have broad discretion to evaluate “‘the overall
cogency of each expert’s analysis.’” We are not bound
by the formulae and opinions proffered by an expert,
especially when they are contrary to our own judgment.
Instead, we may reach a decision based on our own
analysis of all the evidence in the record. The
persuasiveness of an expert’s opinion depends largely
upon the disclosed facts on which it is based. While
we may accept the opinion of an expert in its entirety,
we may be selective in the use of any portion of such
an opinion. We also may reject the opinion of an
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