Sidney Dishal and Anna Dishal - Page 8

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        in determining whether an activity is engaged in for profit: (1)              
        The manner in which the taxpayer carried 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             
        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) the extent to which elements of personal pleasure           
        or recreation are involved. Sec. 1.183-2(b), Income Tax Regs. The             
        list of factors in the regulations is not exclusive, and other                
        factors may be considered in determining whether. an activity is              
        engaged in for profit. These factors are not merely a counting                
        device where the number of factors for or against the taxpayer is             
        determinative, but rather all facts and circumstances must be taken           
        into account, and more weight may be given to some factors than to            
        others. Cf. Dunn v. Commissioner, 70 T.C. 715 (1978), affd. on                
        another issue 615 F.2d 578 (2d Cir. 1980). Not all factors are                
        applicable in every case, and no one factor is controlling.                   
        Abramson v. Commissioner, 86 T.C. 360, 371 (1986); Allen v.                   
        Commissioner, 72 T.C. 28, 34 (1979); sec. 1.183-2(b), Income Tax              
        Regs.                                                                         
        Respondent determined that during the years in issue                          
        petitioners, were not engaged in horse breeding and horse racing              
        for profit within the meaning-of section 183. We disagree.                    



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