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2(b), Income Tax Regs.
No one factor is determinative in and of itself, and our
conclusion with respect to petitioner’s profit objective does not
depend upon merely counting those factors that suggest the
presence of a profit objective and comparing that number to the
number of factors that indicate the opposite. See id.
We see little benefit in specifically discussing each
factor. Instead, attached as an Appendix to this opinion is the
article from Mustang Monthly, previously cited in this opinion.
The article discusses petitioner’s background, the circumstances
surrounding the acquisition of his modified Mustang, open-road
racing in general, petitioner’s involvements and achievements in
the sport, and to some extent, petitioner’s future plans. The
article was received into evidence as petitioners’ exhibit and
compels us to reject their contention that Turtle Performance was
a trade or business during the years in issue.
Petitioners point to the amount of time and money petitioner
has spent in connection with Turtle Performance and argue that
both are indicative of a profit objective. As we view the
matter, the time that petitioner put into the activity, given his
obvious interest in performance cars, is no more indicative of a
profit objective than a passionate pastime. Similarly, the money
expended suggests little other than to confirm what is commonly
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