William James Courville - Page 6

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          Commissioner, 72 T.C. 411, 426 (1979), affd. without published              
          opinion 647 F.2d 170 (9th Cir. 1981); sec. 1.183-2(b), Income Tax           
          Regs.  Greater weight is to be given to the objective facts than            
          to the taxpayer's mere statement of his intent.  Dreicer v.                 
          Commissioner, supra at 645; sec. 1.183-2(a), Income Tax Regs.               
          The taxpayer has the burden of proving the requisite intention              
          and that respondent's determination that the activities were not            
          engaged in for profit is incorrect.  Rule 142(a); Welch v.                  
          Helvering, 290 U.S. 111 (1933).                                             
               Although the question of the taxpayer's profit motive is a             
          subjective one, objective indicia may be considered to establish            
          the taxpayer's true intent.  Sec. 1.183-2(a), Income Tax Regs.              
          Section 1.183-2(b), Income Tax Regs., sets forth a nonexclusive             
          list of nine objective factors to be considered when ascertaining           
          a taxpayer's intent.  These factors are:  (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              
          the 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; (8) the financial status of the taxpayer; and              
          (9) the elements of personal pleasure or recreation involved in             





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