- 6 -
1978-202; Hulter v. Commissioner, supra at 393; Golanty v.
Commissioner, 72 T.C. 411, 426 (1979), affd. without published
opinion 647 F.2d 170 (9th Cir. 1981). Greater weight is given to
objective facts than to a taxpayer's statement of intent. See
Beck v. Commissioner, supra at 570; 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.
Section 1.183-2(b), Income Tax Regs., provides a
nonexclusive list of factors that should be considered in
determining whether an activity is engaged in with the requisite
profit objective. The nine factors are: (1) The manner in which
the taxpayer carries on the activity; (2) the expertise of the
taxpayer or his or her advisers; (3) the time and effort expended
by the taxpayer in carrying on the activity; (4) the expectation
that the assets used by the taxpayer 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, which are earned; (8) the
financial status of the taxpayer; and (9) whether elements of
personal pleasure or recreation are involved. No single factor,
nor the existence of even a majority of the factors, is
controlling, but rather it is an evaluation of all the facts and
circumstances in the case, taken as a whole, which is
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011