Joyce E. Hastings - Page 14




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               A nonexclusive list of factors set forth in section 1.183-             
          2(b), Income Tax Regs., guides section 183 analysis by indicating           
          relevant facts and circumstances for consideration:  (1) 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) 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, if           
          any, which are earned; (8) the financial status of the taxpayer;            
          and (9) elements of personal pleasure or recreation.                        
               B.  Application of the Statutory Framework                             
                    1.  Manner in which the taxpayer carries on the                   
          activity.                                                                   
               Petitioner claims to have drafted a business plan in 1993.             
          As evidence of this business plan, petitioner submitted a                   
          business plan from a later year with the date “1993” handwritten            
          on the cover sheet.  Petitioner testified that she deleted                  
          portions of the submitted plan identifying two horses that did              
          not exist in 1993.  She testified that the submitted plan, from             
          the beginning up to the identification of the horses, was exactly           
          what was written in 1993.  Upon evaluation of the submitted plan,           
          it is clear that petitioner’s testimony that the same language              






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