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(1979), affd. without published opinion 647 F.2d 170 (9th Cir.
1981).
In determining whether an activity is engaged in for profit,
reference is made to objective standards, taking into account all
of the facts and circumstances of each case. See sec. 1.183-
2(a), Income Tax Regs. The regulations set forth nine criteria
normally considered for this purpose. The factors are: (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 losses with respect to the activity; (7) the
amount of occasional profits, if any, that are earned; (8) the
financial status of the taxpayer; and (9) the presence of
elements of personal pleasure or recreation. See sec. 1.183-
2(b), Income Tax Regs. None of these factors is determinative,
nor is the decision to be made by comparing the number of factors
that weigh in the taxpayer’s favor with the number that support
the Commissioner. See id.
Petitioner contends that she had the requisite profit
objective with respect to her horse-breeding and showing
activity. Conversely, respondent contends that the activity was
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