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profit motive.2 Skeen v. Commissioner, 864 F.2d 93, 94 (9th Cir.
1989).
To determine whether petitioners conducted their activity
for profit, we must weigh all facts and circumstances. Golanty
v. Commissioner, 72 T.C. 411, 426 (1979), affd. without published
opinion 647 F.2d 170 (9th Cir. 1981). Section 1.183-2(b), Income
Tax Regs., sets forth a nonexclusive list of nine factors to
guide courts in analyzing a taxpayer’s profit objective. See
Elliott v. Commissioner, 90 T.C. 960 (1988), affd. without
published opinion 899 F.2d 18 (9th Cir. 1990). The nine 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 the 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 losses 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) the
elements of personal pleasure or recreation involved in the
activity. Sec. 1.183-2(b), Income Tax Regs. Upon review of
these factors, we conclude that section 183 does not limit
2Sec. 7491 is not applicable to this case.
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