-9-
We structure our analysis around nine nonexclusive factors.
Sec. 1.183-2(b), Income Tax Regs. The nine factors are: (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 the 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 loss 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) whether elements of
personal pleasure or recreation are involved. Id.
No factor or set of factors 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; Brannen v. Commissioner, 722 F.2d 695, 704 (11th Cir.
1984), affg. 78 T.C. 471 (1982); sec. 1.183-2(b), Income Tax
Regs. The individual facts and circumstances of each case are
the primary test. Keanini v. Commissioner, supra at 46; Allen v.
Commissioner, supra at 34; sec. 1.183-2(b), Income Tax Regs.
We now examine each of the nine nonexclusive factors.
Manner in Which the Taxpayer Carried On the Activity
We begin by examining the manner in which petitioner carried
on her gambling activity. The fact that a taxpayer carries on
the activity in a businesslike manner may indicate a profit
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