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expectation that assets used in the activity may appreciate in
value; (5) the success of the taxpayer in carrying on similar or
dissimilar activities; (6) the taxpayer's history of income or
losses in the activity; (7) the amount of occasional profits, if
any, that are earned; (8) the financial status of the taxpayer;
and (9) the elements of personal pleasure or recreation.
Sec. 1.183-2(b), Income Tax Regs. None of these factors is
dispositive, in and of itself, and a decision does not rest on
the number of factors satisfied. Golanty v. Commissioner,
supra at 426; sec. 1.183-2(b), Income Tax Regs. We assess these
factors with the aid of common sense, bearing in mind how the
relevant statutory scheme was meant to apply to the facts at
hand. Ranciato v. Commissioner, 52 F.3d at 25-26.
We turn to the nine factors, discussing them one at a time.
We also discuss other considerations that we find to be relevant
in reaching our holding herein.
1. Manner in Which the Activity Is Conducted
We consider the manner in which petitioner conducted his
store. Sec. 1.183-2(b)(1), Income Tax Regs. Objective facts
showing that a taxpayer carries on an activity in a businesslike
manner are indicative of a profit intent.
In several respects petitioner did not conduct his store in
a businesslike fashion. He was responsible for keeping the
store’s records, but they were haphazard and incomplete. He kept
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