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status of the taxpayer; and (9) the presence of elements of
personal pleasure or recreation. Sec. 1.183-2(b), Income Tax
Regs. None of these factors is determinative, nor is the
decision to be made by comparing the number of factors that weigh
in the taxpayer's favor with the number that support the
Commissioner. Id.
Petitioners argue that they had the requisite profit
objective with respect to their dog-breeding activity.
Conversely, respondent asserts that the activity was not engaged
in for profit. We agree with respondent. Because the parties
argued their respective cases by addressing each of the nine
criteria enumerated in the regulations, we follow the same
approach in our discussion.
1. Manner in Which the Activity Is Conducted
We begin by examining the manner in which petitioners
carried on their dog-breeding activity. The fact that a taxpayer
carries on the activity in a businesslike manner and maintains
complete and accurate books and records may indicate a profit
objective. Sec. 1.183-2(b)(1), Income Tax Regs. In deciding
whether the taxpayer has conducted the activity in a businesslike
manner this Court has considered, "whether accurate books are
kept, whether the activity is conducted in a manner similar to
other comparable businesses and whether changes have been
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