- 13 - no substantial personal or recreational elements associated with such activity. Sec. 1.183-2(b)(3), Income Tax Regs. Petitioner maintains that he spent 10 to 12 hours each week engaged in his horse activity. Yet he failed to produce credible evidence explaining the type of work he performed. The available evidence indicates that petitioner spent much of his time riding his horses. Petitioner contends, however, that such riding was not recreational. Instead, petitioner maintains that his riding served several business purposes, including exercising and training. Petitioner also maintains that the reason he rode his horses during competitive events was to develop a better appreciation for his business and illustrate to perspective purchasers that his horses were suitable for novice riders. The record does not support petitioner's arguments. Essentially, by relying on Costello to maintain and train his horses, petitioner avoided the rigors of his horse activity and indulged himself with its pleasantries. Petitioner's testimony otherwise is simply not credible, and we are reluctant to accept Costello's testimony as corroboration in light of his business relationship with petitioner. We conclude that petitioner's horse activity contained substantial elements of a recreational and personal nature. Accordingly, we find that this factor favors respondent.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
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