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used for section 162. See Agro Science Co. v. Commissioner, 934
F.2d 573, 576 (5th Cir. 1991), affg. T.C. Memo. 1989-687;
Antonides v. Commissioner, 893 F.2d 656, 659 (4th Cir. 1990),
affg. 91 T.C. 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 intent. See
Indep. Elec. Supply, Inc. v. Commissioner, 781 F.2d 724, 726 (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
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