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Cir. 1967). More weight is given to objective facts than to the
taxpayer’s statement of his or her intent. Engdahl v.
Commissioner, 72 T.C. 659, 666 (1979); sec. 1.183-2(a), Income
Tax Regs.
The regulations under section 183 provide nine nonexclusive
factors to be used in determining whether a taxpayer is
conducting an activity with the intent to make a profit. Sec.
1.183-2(b), Income Tax Regs. The factors are: (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 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) elements of personal pleasure or
recreation. Id. No single factor controls, other factors may be
considered, and the mere fact that the number of factors
indicating the lack of a profit objective exceeds the number
indicating the presence of a profit objective (or vice versa) is
not conclusive. Id.
We first address the 1996 rental activity. Petitioner
testified that this activity involved the rental of real estate
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