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162 or under paragraph (1) or (2) of section 212. Sec. 183(c).
Section 1.183-2(b), Income Tax Regs., provides a non-exhaustive
list of 9 factors to consider in the determination of whether an
activity is engaged in for profit. These factors are: (1) The
manner in which the taxpayer carried 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
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) whether elements of personal
pleasure or recreation are involved. Resolution of a taxpayer's
profit motive is to be based on all the facts and circumstances
surrounding a case. Engdahl v. Commissioner, 72 T.C. 659, 666
(1979). However, in order for the taxpayer to prevail, the facts
and circumstances must indicate that the taxpayer entered into,
or continued, the activity with an actual and honest objective of
making a profit. Dreicer v. Commissioner, 78 T.C. 642, 645
(1982), affd. without opinion 702 F.2d 1205 (D.C. Cir. 1983).
Although several of the factors listed in Section 1.183-2(b)
favor petitioner, particularly the amount of time invested in his
activities and his moderate income level, we nevertheless find
that, based on all the facts and circumstances of this case,
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