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negligence under section 6662 for 1991 and 1992. The burden of
proof on all issues in dispute in this case is on petitioner.
Welch v. Helvering, 290 U.S. 111, 115 (1933).
A. Whether Petitioners Operated Olde Bank Antiques for Profit
in 1991 and 1992
Petitioners contend that they operated Olde Bank Antiques
for profit in 1991 and 1992. An activity is conducted for profit
if it is conducted with an actual and honest profit objective.
Osteen v. Commissioner, 62 F.3d 356, 358 (11th Cir. 1995), affg.
in part and revg. on other issues T.C. Memo. 1993-519; Surloff v.
Commissioner, 81 T.C. 210, 233 (1983); Dreicer v. Commissioner,
78 T.C. 642, 645 (1982), affd. without opinion 702 F.2d 1205
(D.C. Cir. 1983). In deciding whether petitioners operated the
antique shop and farm for profit, we apply the nine factors
listed in section 1.183-2(b), Income Tax Regs. The nine factors
are: (1) The manner in which the taxpayer carried on the
activity; (2) the expertise of the taxpayer or his or her
advisors; (3) the time and effort expended by the taxpayer in
carrying on the activity; (4) the expectation that the 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 loss 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) whether elements of personal pleasure or recreation are
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