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without published opinion 647 F.2d 170 (9th Cir. 1981); sec.
1.183-2(b)(6), Income Tax Regs.
Petitioner generated revenue from the farming activity in
1999 and 2000, resulting in a net profit in 1999, but he incurred
a net loss in 1998 and 2000. Despite the 1999 net profit,
petitioner has claimed losses between $80,000 and $90,000 from
conducting the farming activity since 1991. This factor favors
respondent.
7. Amount of Occasional Profits, If Any
We next consider the amount of occasional profits, if any,
that petitioner earned through 2000. Occasional profits the
taxpayer earned from the activity, in relation to the amount of
losses incurred, the amount of the taxpayer’s investment, and the
value of the assets used in the activity may provide useful
criteria in determining the taxpayer’s intent. Sec. 1.183-
2(b)(7), Income Tax Regs. We consider the increasing size,
width, volume, and value of the taxpayer’s harvestable timber
when we apply this factor to a tree-farming activity. Kurzet v.
Commissioner, T.C. Memo. 1997-54, affd. in part, revd. and
remanded on other grounds 222 F.3d 830 (10th Cir. 2000).
Petitioner earned a profit from the farming activity in
1999. Respondent contends that we should give little weight to
the 1999 profit because it was partially due to selling mature
timber that petitioner could have sold in other years. We
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