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Section 1.183-2(b), Income Tax Regs., sets forth some
relevant factors for determining whether an activity is engaged
in for profit. No one factor is controlling. See Brannen v.
Commissioner, 722 F.2d 695, 704 (11th Cir. 1984), affg. 78 T.C.
471 (1982); Golanty v. Commissioner, supra at 426. The relevant
factors include: (1) The manner in which the taxpayer carries on
the activity; (2) the expertise of the taxpayer or his or her
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 and 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
elements of personal pleasure or recreation. See sec. 1.183-
2(b), Income Tax Regs.
Objective facts showing that a taxpayer carried on his
activity in a businesslike manner and maintained complete and
accurate books and records may indicate that the activity is
engaged in for profit. See sec. 1.183-2(b)(1), Income Tax Regs.
Generally speaking, a taxpayer who maintains good records may be
genuinely interested in using the records to develop a profitable
business. See Stasewich v. Commissioner, supra.
Petitioner contends that he maintained business records that
substantiated his income and expenses for his artist activity and
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