9 "with an 'actual and honest objective' of making a profit." Elliott v. Commissioner, 90 T.C. 960, 970 (1988), affd. without published opinion 899 F.2d 18 (9th Cir. 1990). Whether petitioner possessed the necessary intention of making a profit is a question of fact to be determined on the basis of all the facts and circumstances. Taube v. Commissioner, 88 T.C. 464, 480 (1987). The regulations set forth the following nonexclusive factors to consider in determining whether an activity is engaged in for profit: (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 assets used in the activity may appreciate in value; (5) the success of the taxpayer in carrying on other activities; (6) the taxpayer's history of income or losses with respect to the activity; (7) the amount of occasional profit, if any, which is earned; (8) the financial status of the taxpayer; and (9) whether elements of personal pleasure or recreation were involved. Sec. 1.183-2(b), Income Tax Regs. Considering the relevant factors contained in the regulation, we conclude that petitioner did not engage in her Too Close To Home activity for profit. Petitioner did not carry on the activity in a businesslike manner. Although she maintained a bank account for Too Close To Home, it was not used exclusivelyPage: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
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