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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 or recreation.
Id. 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 petitioners were engaged in an
activity with the requisite profit objective, all the facts and
circumstances of their 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). 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.
In 1984, petitioners purchased 666 acres of land (the ranch)
in Myrtle Creek, Oregon. Except for two log cabins, the ranch
was unimproved, and contained trees, pasture land, and three
ponds. Since about 1986, petitioners have cleared areas and
planted more trees, had cattle graze the pasture land, and built
roads, ponds, and barns. Petitioners’ residence was built in
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