James L. Sullivan and Dorothy B. Sullivan - Page 1

                                 T.C. Memo. 1998-367                                  


                               UNITED STATES TAX COURT                                


              JAMES L. SULLIVAN AND DOROTHY B. SULLIVAN, Petitioners v.               
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                      


               Docket No. 3332-96.                   Filed October 8, 1998.           


               Bruce Locke, for petitioners.                                          
               Roberta L. Shumway, for respondent.                                    


                       MEMORANDUM FINDINGS OF FACT AND OPINION                        

               GALE, Judge:  Respondent determined a deficiency of                    
          $21,561.45 in petitioners' Federal income tax for taxable year              
          1992.  The issue for decision is whether petitioners' horse                 
          breeding and showing activities constitute an "activity not                 







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