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of whether the requisite profit objective exists is to be
resolved on the basis of all the surrounding facts and
circumstances. Finoli v. Commissioner, 86 T.C. 697, 722 (1986);
Allen v. Commissioner, 72 T.C. 28, 34 (1979). Petitioners bear
the burden of proving that Dr. DeMattia entered into and remained
in the golf sponsorship activity with the requisite profit
objective. Rule 142(a); Welch v. Helvering, 290 U.S. 111 (1933);
Beck v. Commissioner, 85 T.C. 557, 570 (1985); Flowers v.
Commissioner, 80 T.C. 914, 931 (1983).8
Section 1.183-2(b), Income Tax Regs., sets forth a
nonexclusive list of nine factors to be considered when
ascertaining a taxpayer's intent. These factors are: (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 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; (8) the financial status of
the taxpayer; and (9) elements of personal pleasure or
recreation. All facts and circumstances must be taken into
8 Sec. 183(d) provides a statutory reversal of the burden
of proof if petitioners meet specified criteria. Petitioners do
not meet such criteria.
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