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taxpayer's history of income or losses 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),
Income Tax Regs.; cf. Dunn v. Commissioner, 70 T.C. 715, 720
(1978), affd. 615 F.2d 578 (2d Cir. 1980).
Petitioner contends that the losses from the horse breeding
activity are properly deductible because the activity was
motivated by an actual and honest objective of making a profit.
Conversely, respondent asserts that the activity was not engaged
in for profit. We agree with respondent.
Manner in Which the Activity Is Conducted
The fact that a taxpayer carries on the activity in a
businesslike manner and maintains complete and accurate books and
records may indicate a profit objective. Sec. 1.183-2(b)(1),
Income Tax Regs. The parties have stipulated that petitioner did
not keep adequate records of the horse breeding activity.
Petitioner did not make any written forecasts or projections of
future income. Additionally, petitioner's failure to formulate a
credible business or profit plan indicates that his actions were
not businesslike and that he lacked a profit motive.
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