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(2) The expertise of the taxpayer or his advisers;
(3) The time and effort expended by the taxpayer in
carrying on the activity;
(4) Expectation that assets used in 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 losses with
respect to the activity;
(7) The amount of occasional profits;
(8) The financial status of the taxpayer;
(9) Elements of personal pleasure or recreation.
Petitioner bears the burden of proof with respect to this
determination. Golanty v. Commissioner, supra at 426; McCarthy
v. Commissioner, T.C. Memo. 2000-135.7
Petitioners argue that Mr. Carino was engaged in the alleged
management activity for profit and cite numerous factors as
evidence thereof: He maintained a logbook of expenses; he used a
separate checking account while in Atlanta; he was an experienced
attorney in a successful personal injury litigation practice who
took courses in entertainment and sports law and accumulated
books and treatises on that subject; he consulted with purported
experts in the field; he spent considerable time and effort in
the activity to the extent that his law practice suffered; and he
7Petitioners do not argue the applicability of sec. 7491(a),
and the record does not reflect that sec. 7491(a) applies.
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