b) [ NZT 3.2.1] there are several factors should be considered when determine a taxpayer`s intention to make profits:
Nature of the activity. Owen moves to a small rural township and lease a greenhouse nearby. He installed automatic irrigation and temperature system for growing of plants. And also together with ancillary benches and shelves. He undertakes a part-time job to support family and his business. So he is not exist to start undertaking in the mind, he just dose real activities to supply a good growing conditions for plants and prepare to start his business.
Period, scale of operation and volume of transactions. Owen`s business has grown into a regular commercial production for provide 200 potted plants in flowers and fortnightly supply to retailers in the end of 2008. Then, he tries to build a good relationship with retailers by a low selling price. He is succeeding to gain a foothold in the market and wants to also expand his business which he dreams to be an established and reputable supplier. Now, Owen`s undertaking is more regular and awareness in the market of plants. Real transaction: a business cannot exist in the mind of the taxpayer alone, it must involve real transactions carried on for a pecuniary profit. Calkin v CIR  6 NZTC 61782. Section YA1 Business (a): business includes any profession, trade, or undertaking carried on for profits. Owen Smith dose regular commercial production and supply to retailers fortnightly. It is the real transactions from production to selling for a pecuniary profit.
Commitment of time, money and efforts. In January 2009, Owen reduces the working time of his part-time jobs and working more than 25 hours per week on his business. He expands the undertaking by order 6600 plants from a propagator, and purchases a vehicle convenient to meet his clients over South Island. But he lost the occupancy right to use the greenhouse in July 2009. Without it, he cannot grow plants and operate the business anymore. At the last, it is affect his undertaking into a lot of losses. Eggers v CIR (1988): no business if activities preparatory to starting business. And the expenditure incurred in preparation is non-deductible. Between 2008 and 2009, Owen Smith is already starting his business, and operating in a