- 8 -
or recreation. Sec. 1.183-2(b), Income Tax Regs. These factors
are not applicable or appropriate in every case. Abramson v.
Commissioner, 86 T.C. 360, 371 (1986). The facts and
circumstances of the case in issue remain the primary test. Id.
In determining whether petitioner was engaged in the bed and
breakfast activity with the requisite intent to make a profit,
all of the facts and circumstances of his situation must be taken
into account. Golanty v. Commissioner, 72 T.C. 411, 426 (1979),
affd. without published opinion 647 F.2d 170 (9th Cir. 1981);
sec. 1.183-2(a) and (b), Income Tax Regs. No single factor is
controlling, nor is the existence of a majority of factors
favoring or disfavoring a profit objective necessarily
controlling. Hendricks v. Commissioner, 32 F.3d 94, 98 (4th Cir.
1994), affg. T.C. Memo. 1993-396; sec. 1.183-2(b), Income Tax
Regs.
Petitioner generally bears the burden of proof with respect
to this determination. Rule 142(a); Golanty v. Commissioner,
supra at 426; McCarthy v. Commissioner, T.C. Memo. 2000-135.
Petitioner does not argue the applicability of section 7491(a),
and the record does not reflect that section 7491(a) applies.
We first consider the manner in which the taxpayer carries
on the activity. The fact that a taxpayer carries on the
activity in a businesslike manner and maintains complete and
accurate books and records may indicate a profit objective.
Engdahl v. Commissioner, 72 T.C. 659, 666 (1979); sec. 1.183-
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