Ralph D. and Brenda Konchar - Page 7

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          686 (1988); Allen v. Commissioner, 72 T.C. 28, 33 (1979); Rand v.           
          Commissioner, 34 T.C. 1146, 1149 (1960).                                    
               Whether the required profit objective exists is to be                  
          determined on the basis of all the facts and circumstances of               
          each case.  See Hirsch v. Commissioner, 315 F.2d 731, 737 (9th              
          Cir. 1963), affg. T.C. Memo. 1961-256; Golanty v. Commissioner,             
          72 T.C. 411, 426 (1979), affd. without published opinion 647 F.2d           
          170 (9th Cir. 1981); sec. 1.183-2(a), Income Tax Regs.  While a             
          reasonable expectation of profit is not required, the taxpayer's            
          objective of making a profit must be bona fide.  See Elliott v.             
          Commissioner, 84 T.C. 227, 236 (1985), affd. without published              
          opinion 782 F.2d 1027 (3d Cir. 1986).  In making this factual               
          determination, the Court gives greater weight to objective                  
          factors than to a taxpayer's mere statement of her intent.  See             
          Indep. Elec. Supply, Inc. v. Commissioner, 781 F.2d 724 (9th Cir.           
          1986), affg. Lahr v. Commissioner, T.C. Memo. 1984-472; Dreicer             
          v. Commissioner, 78 T.C. 642, 645 (1982), affd. without published           
          opinion 702 F.2d 1205 (D.C. Cir. 1983); sec. 1.183-2(a), Income             
          Tax Regs.                                                                   
               Section 1.183-2(b), Income Tax Regs., sets forth nine                  
          nonexclusive factors that should be considered in determining               
          whether a taxpayer is engaged in a venture with a profit                    
          objective.  They include:  (1) The manner in which the taxpayer             
          carried on the activity; (2) the expertise of the taxpayer or her           






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