N. Thomas Ryan - Page 17

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                    8.  The Financial Status of the Taxpayer                          
               The fact that a taxpayer does not have substantial income or           
          capital from sources other than an activity may indicate that the           
          activity is engaged in for profit.  See sec. 1.183-2(b)(8),                 
          Income Tax Regs.  The fact that a taxpayer does have substantial            
          income from sources other than an activity, on the other hand,              
          may indicate that the activity is not engaged in for profit.  The           
          latter is especially true where losses from the activity generate           
          substantial tax benefits or where there are personal or                     
          recreational elements involved.  Sec. 1.183-2(b)(9), Income Tax             
          Regs.                                                                       
               Petitioner received approximately $229,176 in 1997, $231,587           
          in 1998, and $276,600 in 1999 in wages from his work as an                  
          emergency room physician.  Petitioner averaged $244,000 per year            
          as a full-time wage earner over the 3-year tax period.  The                 
          salary or income for each tax year in question, which petitioner            
          hoped to offset by claimed losses, indicates that the activity is           
          not one engaged in for profit.  This factor weighs against                  
          petitioner.                                                                 
                    9.  Elements of Personal Pleasure or Recreation                   
               The absence of personal pleasure or recreation relating to             
          the activity in question may indicate the presence of a profit              
          objective.  Sec. 1.183-2(b)(9), Income Tax Regs.  The mere fact             
          that a taxpayer derives personal pleasure from an activity,                 






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