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objective of making a profit”). In resolving the factual
question, greater weight is given to the objective facts than to
the taxpayer’s self-serving statements of intention. Thomas v.
Commissioner, 84 T.C. 1244, 1269 (1985), affd. 792 F.2d 1256 (4th
Cir. 1986).
Section 7491(a) provides that the burden of proof is placed
on the Commissioner as to any factual issue on which the taxpayer
offers credible evidence relevant to his income tax liability, if
certain conditions have been satisfied, including the
commencement of the Commissioner’s examination after July 22,
1998. The parties have not addressed the applicability of
section 7491(a) to this proceeding, even though it seems likely
that the examination was commenced after that date, at least as
to 1998, the last taxable year in issue. We nevertheless
conclude that the burden of proof is not in issue in this case,
inasmuch as we decide the matter without regard to the allocation
of the burden of proof; our findings and decision are supported
by a preponderance of the evidence.
Section 1.183-2(b), Income Tax Regs., sets forth a
nonexclusive list of nine factors that bear on whether an
activity is engaged in for profit. The regulation specifically
provides that no single factor, or number of factors, is
controlling, and the factors need not be given equal weight. See
Ranciato v. Commissioner, 52 F.3d 23, 26 (2d Cir. 1995) (“the
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