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with respect to the activity; (7) the amount of occasional
profit, if any; (8) the financial status of the taxpayer; and (9)
any elements of personal pleasure or recreation. No single
factor, nor simple numerical majority of factors, is controlling.
See Cannon v. Commissioner, 949 F.2d 345, 350 (10th Cir. 1991),
affg. T.C. Memo. 1990-148.
Petitioner presented little evidence concerning many of the
factors contained in the regulations.2 We, therefore, focus on
the factors that form our decision.
What concerns us most is the lack of any financial planning
whatsoever. Petitioner “had basically faith” in his belief that
he would make a profit. Moreover, there is nothing in the record
to reasonably suggest that the activity, as petitioner operated
it during the year in question, would ever be profitable. He may
have had a written business plan, but a plan without any
financial data would have been useless.
Furthermore, there is little to distinguish the personal
aspects of the activity from the business aspects. Petitioner
had no business license, no business insurance, no business bank
account, and no books of accounts that one would generally
associate with a trade or business. We also note that most of
2 Petitioner does not argue, nor does the record establish,
that petitioner satisfied the requirements of sec. 7491(a).
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