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to the taxpayer’s statement of intentions. See Thomas v.
Commissioner, 84 T.C. 1244, 1269 (1985), affd. 792 F.2d 1256 (4th
Cir. 1986).
Section 1.183-2(b), Income Tax Regs., contains a
nonexclusive list of factors to be used in determining whether an
activity is engaged in for profit. These 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 similar
or dissimilar activities; (6) the history of income or losses
with respect to the activity; (7) the amount of occasional
profit, if any; (8) the financial status of the taxpayer; and (9)
any elements of personal pleasure or recreation. No single
factor, nor simple numerical majority of factors, is controlling.
See Cannon v. Commissioner, 949 F.2d 345, 350 (10th Cir. 1991),
affg. T.C. Memo. 1990-148.
Petitioners presented no evidence concerning many of the
factors contained in the regulations. While petitioner claims
that he maintained books and records, he did not produce any
records at trial. He could not explain the $16,310 deduction
claimed for supplies in 1995, and he could not explain the
components of the $22,494 deduction for other expenses in 1996.
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