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activity is engaged in for profit. These factors are: (1) The
manner in which the taxpayers carry on the activity; (2) the
expertise of the taxpayers or their advisers; (3) the time and
effort expended by the taxpayers in carrying on the activity; (4)
the expectation that assets used in the activity may appreciate
in value; (5) the success of the taxpayers in carrying on similar
or dissimilar activities; (6) the history of income or losses
with respect to the activity; (7) the amount of occasional
profit, if any; (8) the financial status of the taxpayers; and
(9) elements of personal pleasure or recreation. No single
factor, nor the existence of a majority of factors favoring or
disfavoring a profit objective, is necessarily controlling.
Cannon v. Commissioner, 949 F.2d 345, 350 (10th Cir. 1991), affg.
T.C. Memo. 1990-148.
Taking into account the relevant factors outlined above, and
considering the facts and circumstances relating to Aspiring
Artists’ activities, we are not persuaded that petitioner engaged
in those activities with the objective of making a profit.
Petitioner attempted to show that he managed some aspects of
Aspiring Artists in a businesslike fashion. Petitioner
maintained detailed records relating to car expenses including
repair costs, gasoline receipts, and miles traveled by his
stepdaughter. It appears, however, that those records were
maintained primarily to support tax deductions, not as a record
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