James J. Hogan - Page 8




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          Commissioner, 90 T.C. 74, 91 (1988); Dreicer v. Commissioner, 78            
          T.C. 642, 645 (1982), affd. without opinion 702 F.2d 1205 (D.C.             
          Cir. 1983).  While a taxpayer need not have a reasonable                    
          expectation of profit, the facts and circumstances must                     
          demonstrate that he or she entered into the activity, or                    
          continued the activity, with the actual and honest objective of             
          making a profit.  Taube v. Commissioner, 88 T.C. 464, 478 (1987);           
          Dreicer v. Commissioner, supra at 645.  The taxpayer’s objective            
          to make a profit must be analyzed by looking at all the                     
          surrounding facts.  Dreicer v. Commissioner, supra at 645.  These           
          facts are given greater weight than the taxpayer’s mere statement           
          of intent.  Id.                                                             
               Section 1.183-2(b), Income Tax Regs., provides a                       
          nonexclusive list of relevant factors which should be considered            
          in determining whether the taxpayer has the requisite profit                
          objective.  The factors are:  (1) The manner in which the                   
          taxpayer carries on the activity; (2) the expertise of the                  
          taxpayer or 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, which are earned; (8) the financial status of              
          the taxpayer; and (9) any elements indicating personal pleasure             






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