Clarence A. Hunt, Jr. - Page 5

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            Golanty v. 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                               
            intent, and that the Commissioner's determination that the                                    
            activity was 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 objective 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                                    

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