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Whether a taxpayer has the requisite actual and honest
objective of making a profit is a question of fact to be resolved
on the basis of all of the facts and circumstances of the
particular case. Golanty v. Commissioner, 72 T.C. 411, 426
(1979), affd. without published opinion 647 F.2d 170 (9th Cir.
1981); Dunn v. Commissioner, 70 T.C. at 720. The taxpayer bears
the burden of proof on this issue. Rule 142(a). In resolving
this factual issue, greater weight is accorded to objective facts
than to a taxpayer's mere statement of intent. Thomas v.
Commissioner, 84 T.C. 1244, 1269 (1985), affd. 792 F.2d 1256 (4th
Cir. 1986); Dreicer v. Commissioner, 78 T.C. at 645; sec. 1.183-
2(a), Income Tax Regs.
Section 1.183-2(b), Income Tax Regs., sets out a
nonexclusive list of nine factors relevant to the issue as to
whether the taxpayer has the requisite actual and honest profit
objective.8 Not all of these factors are applicable in every
case, and no one factor is controlling. Taube v. Commissioner,
88 T.C. 464, 479-480 (1987); Abramson v. Commissioner, 86 T.C.
8 These factors are: (1) Manner in which the taxpayer
carries on the activity; (2) the expertise of the taxpayer or his
advisors; (3) the time and effort expended by the taxpayer in
carrying on the activity; (4) expectation that assets used in
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)
elements of personal pleasure or recreation. Sec. 1.183-2(b),
Income Tax Regs.
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