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objective of realizing a profit. Rule 142(a); Golanty v.
Commissioner, supra at 426.
The following factors, which are nonexclusive, should be
considered in the determination of whether an activity is engaged
in for profit: (1) The manner in which the taxpayer carried on
the activity; (2) the expertise of the taxpayer or his or her
advisors; (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)
elements of personal pleasure or recreation. Sec. 1.183-2(b),
Income Tax Regs. No one factor is determinative in and of
itself, and a profit objective does not hinge on the number of
factors satisfied. Sec. 1.183-2(b), Income Tax Regs.
Based upon an examination of all the facts and
circumstances, and taking into account the above factors, we are
unable to conclude that Hans Hammann conducted the charter boat
service with a bona fide, honest and objective profit motive.
We find that the charter boat service was operated not with
the requisite profit objective necessary to be considered a trade
or business, but rather as a means to subsidize a recreational
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