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9. Elements of Personal Pleasure
The presence of recreational or personal motives in
conducting an activity may indicate that the taxpayer is not
conducting the activity for profit. Sec. 1.183-2(b)(9), Income
Tax Regs. A taxpayer's enjoyment of an activity does not show
that the taxpayer lacks a profit objective if the activity is, in
fact, conducted for profit as shown by other factors. Jackson v.
Commissioner, 59 T.C. 312, 317 (1972); sec. 1.183-2(b)(9), Income
Tax Regs. However, if the possibility for profit is small
compared to the possibility for gratification, the latter
possibility may be the primary motivation for the activity.
White v. Commissioner, 23 T.C. 90, 94 (1954), affd. per curiam
227 F.2d 779 (6th Cir. 1955).
Petitioners point out that petitioner did not ride horses in
the years in issue and that she worked hard. Despite this,
petitioner loves animals and has enjoyed being around horses
since childhood. Considering petitioner's unlikelihood of
profit, we conclude that this factor favors respondent.
C. Conclusion
We conclude that petitioner did not operate her horse
breeding activity for profit in 1988, 1989, and 1990 for purposes
of section 183.
To reflect the foregoing,
Decision will be entered
for respondent.
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