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economic profit independent of tax savings. See, e.g., Antonides
v. Commissioner, 91 T.C. 686, 694 (1988), affd. 893 F.2d 656 (4th
Cir. 1990).
Section 1.183-2(b), Income Tax Regs., provides a non-
exclusive list of factors we consider to determine whether the
taxpayers are engaged in the venture with a profit objective.
They include: (1) The manner in which the taxpayers carried on
the activity; (2) the expertise of the taxpayers or their
advisers; (3) the time and effort expended by the taxpayers in
carrying on the activity; (4) the expectation that the assets
used in the activity may appreciate in value; (5) the success of
the taxpayers in carrying on other similar or dissimilar
activities; (6) the taxpayers’ history of income or loss with
respect to the activity; (7) the amount of occasional profits
that are earned; (8) the financial status of the taxpayers; and
(9) whether elements of personal pleasure or recreation are
involved. No single factor is controlling, and we do not reach
our decision by merely counting factors that support each party’s
position. See Dunn v. Commissioner, 70 T.C. 715, 720 (1978),
affd. 615 F.2d 578 (2d Cir. 1980); sec. 1.183-2(b), Income Tax
Regs. Certain elements are given more weight than others because
they are more meaningfully applied to the facts in our case.
1. Manner in Which 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 that the activity was engaged in for profit.
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