Melvin Nickerson and Naomi W. Nickerson v. Commissioner of Internal Revenue

PELL, Circuit Judge.

Petitioners appeal the judgment of the United States Tax Court finding that profit was not their primary goal in owning a dairy farm. Based on this finding the tax court disallowed deductions for losses incurred in renovating the farm. The sole issue presented for our review is whether the tax court’s finding regarding petitioners’ motivation was clearly erroneous.

I. Facts

Melvin Nickerson (hereinafter referred to as petitioner) was born in 1932 in a farming community in Florida. He worked evenings and weekends on his father’s farm until he was 17. Petitioner entered the…