James Castagnetta - Page 10

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          Cir. 1981); Bessenyey v. Commissioner, 45 T.C. 261, 274 (1965),             
          affd. 379 F.2d 252 (2d Cir. 1967).                                          
               Whether petitioner engaged in his gambling activity with an            
          actual and honest objective of realizing a profit must be                   
          redetermined year-to-year, taking into account all of the                   
          relevant facts and circumstances.  Golanty v. Commissioner,                 
          supra at 426; sec. 1.183-2(a) and (b), Income Tax Regs.  More               
          weight is given to objective facts than to petitioner’s statement           
          of his intent.  Engdahl v. Commissioner, 72 T.C. 659, 666 (1979);           
          sec. 1.183-2(a), Income Tax Regs.                                           
               The following factors, which are nonexclusive, should be               
          considered in the determination of whether an activity is engaged           
          in for profit:  (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 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.  Sec. 1.183-               
          2(b), Income Tax Regs.                                                      







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