James Tinnell - Page 20

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          fide.  See Golanty v. Commissioner, supra at 425-426.  Although             
          our analysis focuses on the subjective intention of the taxpayer,           
          greater weight is given to objective facts than to a taxpayer’s             
          mere statement of intent.  See Independent Elec. Supply, Inc. v.            
          Commissioner, 781 F.2d 724, 726 (9th Cir. 1986), affg. Lahr v.              
          Commissioner, T.C. Memo. 1984-472; Dreicer v. Commissioner, 78              
          T.C. 642, 645 (1982), affd. without opinion 702 F.2d 1205 (D.C.             
          Cir. 1983); Churchman v. Commissioner, 68 T.C. 696, 701 (1977);             
          sec. 1.183-2(a), Income Tax Regs.  Petitioner bears the burden of           
          proving he had the requisite profit objective.  See Rule 142(a);            
          Golanty v. Commissioner, supra at 426.                                      
               Section 1.183-2(b), Income Tax Regs., sets forth a                     
          nonexclusive list of factors to be considered in determining                
          whether the taxpayer has the requisite profit objective.  The               
          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 other similar or dissimilar activities; (6) the                 
          taxpayer’s history of income or 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)                   
          elements of personal pleasure or recreation.  No single factor is           

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