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derived from such activity for the taxable year exceeds the
deductions allowable under section 183(b)(1). An activity is "not
engaged in for profit" if it is an activity other than one with
respect to which deductions are allowable for the taxable year
under section 162 or section 212 (1) or (2) . Sec. 183 (c) .
In determining whether an activity is engaged in for profit,
the Court of Appeals for the Ninth Circuit, to which this case is
appealable, has stated that the taxpayer must show that he or she
engaged in the activity with the primary purpose of making a
profit. Wolf v. Commissioner, 4 F.3d 709, 713 (9th Cir. 1993).
Petitioners bear the burden of proving the requisite intent. E.g.,
Golanty v. Commissioner, 72 T.C. 411, 426 (1979), affd. without
published opinion 647 F.2d 170 (9th Cir. 1981); Johnson v.
Commissioner, 59 T.C. 791, 813 (1973), affd. 495 F.2d 1079 (6th
Cir. 1974). Whether a taxpayer is engaged in an activity with the
requisite profit objective is determined from all the facts and
circumstances. E.g., Hulter v. Commissioner, 91 T.C. 371, 393
(1988); Taube v. Commissioner, 88 T.C. 464, 480 (1987); Golanty v.
Commissioner, su ra at 426; sec. 1.1832(a) and (b), Income Tax
Regs. More weight is given to objective facts than to the
taxpayer's mere statement of his or her intent: E.g., Dreicer v.
Commissioner, 78 T.C. 642, 645 (1982), affd. without opinion 702
F.2d 1205 (D.C. Cir. 1983); sec. 1.183-2(a), Income Tax Regs.
The regulations promulgated under section 183 list the
following nine factors that should normally be taken into account
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Last modified: May 25, 2011