No single factor is dispositive. Golanty v. Commissioner, supra at 426. After considering the evidence in this case, we conclude that petitioners engaged in the Activity with the actual and honest objective of making a profit. The fact that a taxpayer carries on an activity in a businesslike manner and maintains complete and accurate books and records may indicate that the activity was carried on for profit. Further, abandonment of unprofitable methods in a manner consistent with an intent to improve profitability may indicate a profit objective.
Several factors indicate that petitioners carried on the Activity in a businesslike manner.
Mrs. Dawson kept books and records for the business. Petitioners also maintained a separate bank account for the Activity. Further, petitioners abandoned the Arabian horse breeding business when Mr. Dawson realized that it would be unprofitable. Petitioners then sought a more profitable enterprise and decided to breed paint horses. Their goal was to develop Hot Twist into a marketable stud.