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and his co-workers in the activity have always been his wife and
their immediate family, none of whom were paid. As this Court
observed, with respect to this factor:
Unquestionably, an enterprise is no less a 'business'
because the entrepreneur gets satisfaction from his work;
however, where the possibility for profit is small (given
all the other factors) and the possibility for gratification
is substantial, it is clear that the 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).]
This factor favors respondent's determination.
10. Conclusion
Based on our discussion above, we conclude that petitioners
operated their activity without an "actual and honest" objective
of making a profit. The activity provided petitioners with
satisfaction, and any income derived therefrom served only as an
added bonus to them.
We have considered all arguments made by petitioners for a
contrary holding and, to the extent not discussed above, have
found them to be without merit. To reflect concessions,
Decision will be entered
under Rule 155.
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Last modified: May 25, 2011