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the activity exceeds the deductions permitted by section
183(b)(1). Section 183(c) defines an activity “not engaged in
for profit” as any activity other than one for which deductions
are “allowable * * * under section 162 or under paragraph (1) or
(2) of section 212.” Essentially the test for determining
whether an activity is engaged in for profit is whether the
taxpayer engages in the activity with the primary objective of
making a profit. Antonides v. Commissioner, 893 F.2d 656, 659
(4th Cir. 1990), affg. 91 T.C. 686 (1988). Although the
expectation need not be reasonable, the expectation must be bona
fide. Hulter v. Commissioner, 91 T.C. 371, 393 (1988).
Furthermore, in resolving the question, greater weight is given
to the objective facts than to the taxpayer’s statement of
intent. Thomas v. Commissioner, 84 T.C. 1244, 1269 (1985), affd.
792 F.2d 1256 (4th Cir. 1986).
In general, the Commissioner’s determination in the notice
of deficiency is presumed correct. Rule 142(a); Welch v.
Helvering, 290 U.S. 111 (1933). Under certain circumstances, the
burden of proof shifts to the Commissioner. Sec. 7491(a)(1).
Petitioner does not contend that section 7491 is applicable, nor
did he establish that the burden of proof should shift to
respondent. Accordingly, petitioner bears the burden of
establishing that he engaged in his fishing activity for profit
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