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Commissioner, T.C. Memo. 2003-224. The evidence in the record
does not support a finding that the actions and expertise of the
promoters were consistent with the profit objective required
under section 183.
C. Objective Factors Listed in the Regulations
Section 1.183-2(b), Income Tax Regs., sets forth a list of
nine nonexclusive factors to be considered in determining whether
an activity was engaged in for profit: (1) The extent to which
the taxpayer carries on the activity in a businesslike manner;
(2) the taxpayer’s expertise or reliance on the advice of
experts; (3) the time and effort the taxpayer expends in carrying
on the activity; (4) the expectation that the assets used in the
activity may appreciate in value; (5) the taxpayer’s success in
similar activities; (6) the taxpayer’s history of income or loss
from the activity; (7) the amount of occasional profits, if any;
(8) the taxpayer’s financial status; and (9) the elements of
personal pleasure or recreation. Not all of these factors are
applicable in every case, and no one factor is controlling. Id.
Because not all the factors are applicable in this case, we will
not enter into a detailed analysis of each factor; rather, we
briefly address why application of the relevant factors further
supports a finding that Sav-Fuel lacked the requisite profit
motive.
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