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business. This weighs against finding a profit objective because
no trade or business exists if the primary purpose of the
activity is to generate tax deductions rather than produce an
economic profit, Hagler v. Commissioner, 86 T.C. 598, 624 (1986);
Wheeler v. Commissioner, T.C. Memo. 1983-385, or other tax
benefits, Ferrell v. Commissioner, 90 T.C. 1154, 1181 (1988);
Mosesian v. Commissioner, T.C. Memo. 1990-415, affd. without
published opinion 967 F.2d 588 (9th Cir. 1992).
Based on our careful review of the record, we conclude that
petitioner has not carried his burden of proving that he was
carrying on his artist activity during the years at issue with
the objective of earning a profit. Respondent is sustained on
this issue and on the reclassification of petitioner's income
from the artist activity as miscellaneous income from the sale of
drawings and short-term capital gain from the sale of art
supplies.
Artist Activity as Advertising or Promotion
Petitioner made an alternative argument at trial that his
artist and accounting activities are really one inseparable
activity. Specifically, petitioner stated that most of his
accounting clients are acquaintances from the artist community
who chose him as their accountant because he is a fellow artist.
Petitioner is in essence arguing that some of his expenses
from his artist activity are deductible under section 162 as
ordinary and necessary business expenses of his accounting
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