- 27 -
T.C. 691, 696-699 (1972), affd. without published opinion 486
F.2d 1406 (7th Cir. 1973); Butler v. Commissioner, 36 T.C. 1097
(1961).
In determining whether the requisite intention to make a
profit exists, greater weight is to be given to the objective
facts than to the taxpayer’s self-serving characterization of his
intent. Dreicer v. Commissioner, supra at 645; sec. 1.183-2(a),
Income Tax Regs. 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, that are earned; (8) the financial status of the
taxpayer; and (9) elements of personal pleasure or recreation.
No single factor is determinative, and not all factors are
applicable in every case. Burger v. Commissioner, supra at 358
n.4; Allen v. Commissioner, 72 T.C. 28, 34 (1979); sec. 1.183-
2(b), Income Tax Regs.
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