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personal pleasure or recreation are involved. See sec.
1.183-2(b)(1) through (9), Income Tax Regs.
No single factor, nor even the existence of a majority of
factors favoring or disfavoring the existence of a profit
objective, is controlling. 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. Rather, the relevant facts and
circumstances of the case are determinative. See Golanty v.
Commissioner, 72 T.C. 411, 426 (1979), affd. without published
opinion 647 F.2d 170 (9th Cir. 1981). On the basis of the facts
and circumstances, we hold that Mrs. Smith was not engaged in her
direct marketing activities for profit within the meaning of
section 183.4
1. Manner in Which the Taxpayer Carried On the Activity
Maintaining complete and accurate books and records,
conducting an activity in a manner substantially similar to that
of comparable businesses which are profitable, and making changes
in operations to adopt new techniques or abandon unprofitable
methods suggest that a taxpayer conducted an activity for profit.
Engdahl v. Commissioner, 72 T.C. 659, 666-667 (1979); sec. 1.183-
2(b)(1), Income Tax Regs.
4We note that petitioners did not argue to shift the burden
of proof under sec. 7491(a). Regardless, the outcome of this
case is determined on the preponderance of the evidence after
trial and is unaffected by sec. 7491(a). See Estate of Bongard
v. Commissioner, 124 T.C. 95, 111 (2005).
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