9
"with an 'actual and honest objective' of making a profit."
Elliott v. Commissioner, 90 T.C. 960, 970 (1988), affd. without
published opinion 899 F.2d 18 (9th Cir. 1990). Whether
petitioner possessed the necessary intention of making a profit
is a question of fact to be determined on the basis of all the
facts and circumstances. Taube v. Commissioner, 88 T.C. 464, 480
(1987).
The regulations set forth the following nonexclusive factors
to consider in determining whether an activity is engaged in for
profit: (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 assets used in the activity
may appreciate in value; (5) the success of the taxpayer in
carrying on other activities; (6) the taxpayer's history of
income or losses with respect to the activity; (7) the amount of
occasional profit, if any, which is earned; (8) the financial
status of the taxpayer; and (9) whether elements of personal
pleasure or recreation were involved. Sec. 1.183-2(b), Income
Tax Regs.
Considering the relevant factors contained in the
regulation, we conclude that petitioner did not engage in her Too
Close To Home activity for profit. Petitioner did not carry on
the activity in a businesslike manner. Although she maintained a
bank account for Too Close To Home, it was not used exclusively
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