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Success of the Taxpayer in Carrying On Other Similar or
Dissimilar Activities
We next examine petitioner’s success in carrying on other
similar or dissimilar activities. If a taxpayer has previously
engaged in similar activities and made them profitable, this
success may show that the taxpayer has a profit objective, even
though the current activity is presently unprofitable. Sec.
1.183-2(b)(5), Income Tax Regs. A taxpayer’s success in other,
unrelated activities also may indicate a profit objective.
Daugherty v. Commissioner, T.C. Memo. 1983-188. A taxpayer’s
success in a different business enterprise may be evidence of a
profit objective where the taxpayer relied on diligence,
initiative, foresight, and other qualities that generally lead to
success in business activities. Id.
Petitioner has shown that she was capable of running a
successful business through her ownership and operation of the
trucking business. Petitioner’s success with the trucking
business indicates that she had the skills to operate a business
successfully. She relied on the same accountant for her gambling
activities and relied on her player card to track her winnings.
We find this factor favors petitioner.
Taxpayer’s History of Income or Loss With Respect to the Activity
We next examine petitioner’s history of income or loss with
respect to the gambling activity. A history of substantial
losses may indicate that the taxpayer did not conduct the
activity for profit. Golanty v. Commissioner, 72 T.C. 411, 427
(1979), affd. without published opinion 647 F.2d 170 (9th Cir.
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