Donald Keith Morley and Rebecca B. Morley - Page 10

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               Whether the requisite profit objective exists is determined            
          by looking to all the surrounding facts and circumstances.                  
          Keanini v. Commissioner, 94 T.C. 41, 46 (1990); sec. 1.183-2(b),            
          Income Tax Regs.  Greater weight is given to objective facts than           
          to a taxpayer's mere after-the-fact statement of intent.  Thomas            
          v. Commissioner, 84 T.C. 1244, 1269 (1985), affd. 792 F.2d 1256             
          (4th Cir. 1986); sec. 1.183-2(a), Income Tax Regs.  Petitioners             
          bear the burden of proof.  Rule 142(a).                                     
               Section 1.183-2(b), Income Tax Regs., provides a list of               
          factors to be considered in the evaluation of a taxpayer's profit           
          objective:  (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 loss with respect to the                    
          activity; (7) the amount of occasional profits, if any, from the            
          activity; (8) the financial status of the taxpayer; and (9)                 
          elements of personal pleasure or recreation.  This list is                  
          nonexclusive, and the number of factors for or against the                  
          taxpayer is not necessarily determinative but rather all facts              
          and circumstances must be taken into account, and more weight may           
          be given to some factors than to others.  See sec. 1.183-2(b),              





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