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Section 1.183-2(b), Income Tax Regs., contains a
nonexclusive list of objective factors to be considered in
deciding whether an activity is engaged in for profit. The
factors are: (1) The manner in which the taxpayer carries on the
activity; (2) the expertise of the taxpayer or the taxpayer's
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)
elements of personal pleasure or recreation. Allen v.
Commissioner, supra at 33. No single factor is determinative.
Petitioners have the burden of proving that they had the
requisite profit objective and that respondent's determination is
incorrect. Welch v. Helvering, 290 U.S. 111 (1933).
Businesslike Manner
The fact that a taxpayer carries on the activity in a
businesslike manner and maintains complete and accurate books and
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