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objective of earning a profit.15 Rule 142(a)(1); Welch v.
Helvering, 290 U.S. 111, 115 (1933); Wolf v. Commissioner, supra
at 713; Beck v. Commissioner, 85 T.C. 557, 570 (1985). Whether
the requisite profit objective exists must be resolved on the
basis of all surrounding facts and circumstances. Golanty v.
Commissioner, 72 T.C. 411, 426 (1979), affd. without published
opinion 647 F.2d 170 (9th Cir. 1981); sec. 1.183-2(b), Income Tax
Regs. A taxpayer’s objective of profit need not be reasonable,
but it must be bona fide. Golanty v. Commissioner, supra at 426.
While the analysis of a taxpayer’s objective in engaging in an
activity focuses on the taxpayer’s subjective intent, the finder
of fact need not rely solely upon the taxpayer’s statement of
intent but may resort to objective facts to decide the true
intent. See Indep. Elec. Supply, Inc. v. Commissioner, 781 F.2d
724, 726 (9th Cir. 1986), affg. Lahr v. Commissioner, T.C. Memo.
1984-472; Dreicer v. Commissioner, 78 T.C. 642, 645 (1982), affd.
without opinion 702 F.2d 1205 (D.C. Cir. 1983); sec. 1.183-2(a),
Income Tax Regs.; see also Wolf v. Commissioner, supra at 713.
Section 1.183-2(b), Income Tax Regs., sets forth a
nonexclusive list of nine factors to consider in ascertaining a
taxpayer’s objective in engaging in an activity. These factors
are: (1) The manner in which the taxpayer carries on the
15 Sec. 183(d) provides a statutory reversal of the burden
of proof if a taxpayer meets specified criteria. Petitioner does
not meet those criteria.
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