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(9) Elements of Personal Pleasure or Recreation
Section 1.183-2(b)(9), Income Tax Regs., provides in
pertinent part as follows:
The presence of personal motives in [the] carry-
ing on of an activity may indicate that the
activity is not engaged in for profit, especially
where there are recreational or personal elements
involved. On the other hand, a profit motivation
may be indicated where an activity lacks any
appeal other than profit. It is not, however,
necessary that an activity be engaged in with the
exclusive intention of deriving a profit or with
the intention of maximizing profits. * * * An
activity will not be treated as not engaged in
for profit merely because the taxpayer has
purposes or motivations other than solely to make
a profit. Also, the fact that the taxpayer
derives personal pleasure from engaging in the
activity is not sufficient to cause the activity
to be classified as not engaged in for profit if
the activity is in fact engaged in for profit as
evidenced by other factors whether or not listed
in this paragraph.
Petitioners argue that they "did not derive any
significant personal pleasure or recreational benefits
from the farming activity [and that] they did not use the
farmland for recreational purposes." However, petitioners'
home was located on the same land, and there are numerous
opportunities for petitioners, members of their family, and
guests to obtain recreational or personal pleasure from the
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