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Respondent determined a deficiency in petitioners’ Federal
income tax of $3,108 for taxable year 2001. The sole issue for
decision is whether the tournament bass fishing activity of
Thomas W. Hill (petitioner) was an activity not engaged in for
profit within the meaning of section 183.2
Some of the facts were stipulated and are so found. The
stipulation of facts and the accompanying exhibits are
incorporated herein by reference. At the time the petition was
filed, petitioners’ legal residence was Lexington, Kentucky.
Petitioner began bass fishing for recreation when he was a
child. In 1977, petitioner was appointed general manager of
School Supply, Inc., a wholesale distributor and retailer of
school and teaching supplies. He terminated that employment in
1978 and incorporated Fayette School Service, Inc. (Fayette), a
wholesale school supply company that he operated through 1987.
About the time petitioner incorporated Fayette, he began
participating in competitive bass fishing. His involvement in
that activity continued until 1985, when he and a partner started
127 Sportsman’s Supply, Inc. (Sportsman’s Supply), a retailer of
sporting goods and fishing tackle. After sustaining losses for 2
2Generally, the burden of proof is on the taxpayer. Rule
142(a)(1). Under sec. 7491(a), the burden of proof shifts to the
Commissioner if the taxpayer introduces credible evidence with
respect to any factual issue relevant to ascertaining the
taxpayer’s liability. The facts of this case do not, in the
Court’s view, shift the burden of proof to respondent.
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