- 18 -
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 the 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; (8) the financial status of
the taxpayer; and (9) the elements of personal pleasure or
recreation involved in the activity. 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 to others. Cf. Dunn v. Commissioner,
70 T.C. 715, 720 (1978), affd. 615 F.2d 578 (2d Cir. 1980). Not
all factors are applicable in every case, and no one factor is
controlling. See Abramson v. Commissioner, 86 T.C. 360, 371
(1986); Allen v. Commissioner, 72 T.C. 28, 34 (1979); sec. 1.183-
2(b), Income Tax Regs.
The first factor is the manner in which petitioner conducted
BRVC. The Court considers that petitioner conducted the
activities of BRVC in a businesslike manner. She maintained a
separate checking account for BRVC and retained canceled checks,
credit card statements, and receipts to verify business expenses.
Page: Previous 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 NextLast modified: May 25, 2011