John R. and Edith M. Garbini - Page 6

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          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) any elements indicating personal pleasure or recreation.            
          Id.  These factors are not applicable or appropriate in every               
          case.  Abramson v. Commissioner, 86 T.C. 360, 371 (1986).  The              
          facts and circumstances of the case in issue remain the primary             
          test.  Id.                                                                  
               In determining whether petitioners were engaged in an                  
          activity with the requisite profit objective, all the facts and             
          circumstances of their situation must be taken into account.                
          Golanty v. Commissioner, 72 T.C. 411, 426 (1979), affd. without             
          published opinion 647 F.2d 170 (9th Cir. 1981).  No single factor           
          is controlling, nor is the existence of a majority of factors               
          favoring or disfavoring a profit objective necessarily                      
          controlling.  Hendricks v. Commissioner, 32 F.3d 94, 98 (4th Cir.           
          1994), affg. T.C. Memo. 1993-396; sec. 1.183-2(b), Income Tax               
               In 1984, petitioners purchased 666 acres of land (the ranch)           
          in Myrtle Creek, Oregon.  Except for two log cabins, the ranch              
          was unimproved, and contained trees, pasture land, and three                
          ponds.  Since about 1986, petitioners have cleared areas and                
          planted more trees, had cattle graze the pasture land, and built            
          roads, ponds, and barns.  Petitioners’ residence was built in               

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