Joe Guadagno and Susan Beth Rishel Guadagno - Page 11

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          year in which the activity is conducted must be bona fide, taking           
          into account all of the facts and circumstances.  See Keanini v.            
          Commissioner, supra; Dreicer v. Commissioner, supra at 645;                 
          Golanty v. Commissioner, 72 T.C. 411, 426 (1979), affd. without             
          published opinion 647 F.2d 170 (9th Cir. 1981); Bessenyey v.                
          Commissioner, 45 T.C. 261, 274 (1965), affd. 379 F.2d 252 (2d               
          Cir. 1967); sec. 1.183-2(a) and (b), Income Tax Regs.  More                 
          weight is given to objective facts than to the taxpayer’s                   
          statement of intent.  See Engdahl v. Commissioner, 72 T.C. 659,             
          666 (1979); sec. 1.183-2(a), Income Tax Regs.                               
               The following nonexclusive factors are considered in                   
          determining whether an activity is engaged in for profit:                   
          (1) The manner in which the taxpayer carried on the activity;               
          (2) the expertise of the taxpayer or his or her advisers; (3)               
          the time and effort expended by the taxpayer in carrying on the             
          activity; (4) the expectation that 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, which are           
          earned; (8) the financial status of the taxpayer; and (9)                   
          elements of personal pleasure or recreation.  See sec. 1.183-               
          2(b), Income Tax Regs.  No one factor is determinative, and our             
          conclusion with respect to petitioners’ profit objective does not           






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