Dora Margaret Benson - Page 8




                                        - 7 -                                         
              The regulations set forth a nonexhaustive list of factors               
         that may be considered in deciding whether a profit objective                
         exists.  These factors are:  (1) The manner in which the taxpayer            
         carries on the activity; (2) the expertise of the taxpayer or his            
         advisers; (3) the time and effort expended by the taxpayer in                
         carrying on the activity; (4) the expectation that the assets                
         used in the activity may appreciate in value; (5) the success of             
         the taxpayer in carrying on other similar or dissimilar                      
         activities; (6) the taxpayer’s history of income or losses with              
         respect to the activity; (7) the amount of occasional profits, if            
         any, which are earned; (8) the financial status of the taxpayer;             
         and (9) any elements indicating personal pleasure or recreation.             
         See sec. 1.183-2(b), Income Tax Regs.                                        
              No single factor, nor even the existence of a majority of               
         factors favoring or disfavoring the existence of a profit                    
         objective, is controlling.  See id.  Rather, the relevant facts              
         and circumstances of the case are determinative.  See Golanty v.             
         Commissioner, 72 T.C. 411, 426 (1979), affd. without published               
         opinion 647 F.2d 170 (9th Cir. 1981).                                        
              In this case, petitioner did not maintain accurate books and            
         records for any of her activities.  See sec. 1.183-2(b)(1),                  
         Income Tax Regs.  In fact, it is unclear from the record what                
         percentage of her expenses should have been attributed to any                
         activity other than reflexology services.                                    







Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  Next 

Last modified: March 27, 2008