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the burden of proving that he possessed the requisite objective
and that respondent's determination that an activity was not
engaged in for profit is erroneous. Rule 142(a); Welch v.
Helvering, 290 U.S. 111, 115 (1933).
Relevant Factors
Section 1.183-2(b), Income Tax Regs., sets forth some
relevant factors for determining whether an activity is engaged
in for profit. No one factor is controlling. Brannen v.
Commissioner, 722 F.2d 695, 704 (11th Cir. 1984), affg. 78 T.C.
471 (1982); Golanty v. Commissioner, supra at 426. The relevant
factors include: (1) The manner in which the taxpayer carries on
the activity; (2) the expertise of the taxpayer or his or her
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) the
presence of elements of personal pleasure or recreation. Sec.
1.183-2(b), Income Tax Regs.
The fact that the taxpayer carries on the activity in a
businesslike manner and maintains complete and accurate books and
records may indicate that the activity is engaged in for profit.
Sec. 1.183-2(b)(1), Income Tax Regs. Generally speaking, a
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