-10-
latter possibility constitutes the primary motivation
for the activity. * * * [Burger v. Commissioner, T.C.
Memo. 1985-523, affd. 809 F.2d 355 (7th Cir. 1987); fn.
ref. omitted.]
We find that petitioner engaged in the artist activity
because of the satisfaction, pride, and prestige it afforded him.
Although it is not required that a taxpayer dislike an activity
before it will be considered a business and not a hobby, Jackson
v. Commissioner, 59 T.C. 312, 317 (1972), petitioner has shown no
evidence of a profit objective with respect to his artist
activity.
Substantial income from sources other than the activity
(particularly if the losses from the activity generate
substantial tax benefits) may indicate that the activity is not
engaged in for profit especially if there are personal or
recreational elements involved. Sec. 1.183-2(b)(8), Income Tax
Regs. In general, a taxpayer with substantial income unrelated
to the activity can more readily afford a hobby.
Petitioner did have an independent source of income (from
his accounting business) and did not rely on his artist activity
to support himself. Additionally, we note that for 1991 and 1993
(although the 1993 year is not at issue) petitioner reported a
loss from his artist activity exactly equal to the income from
his accounting activity. Such an unlikely coincidence indicates
that petitioner may be using his artist activity as a device to
eliminate Federal income tax on the income from his accounting
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