Richard A. Stasewich - Page 7

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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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