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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
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. See
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 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
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