- 10 -10
5. Taxpayer's Success in Other Activities.
The evidence does not show that petitioner engaged in any
other activity that relates to his management of Benjamin's
motocross racing activity.
This factor favors respondent.
6. & 7. Taxpayer's History of Income or Losses and the
Amount of Occasional Profit, If Any.
The record shows that Benjamin did not earn a profit in any
prior year, and that Benjamin’s motocross racing activities could
not have produced a profit during 1993, the year in issue,
because as an amateur he was not eligible to win any cash prizes.
This would also have been true for at least the 3 years
succeeding 1993, until 1996, when upon reaching the age of 16
Benjamin could have turned pro. Even then, however, the record
shows that petitioner decided that Benjamin should not turn pro
because of his slight size and because he wanted Benjamin to
continue riding a motorbike which was not as big as the smallest
bike ridden in professional competition. We also note that for
the year in issue, petitioner reduced his total income of $44,709
earned in the concrete construction business by $13,217 expended
in connection with Benjamin's motocross racing activity.
A series of losses during the startup stage of an activity
is not necessarily an indication that the activity was not
engaged in for profit. See sec. 1.183-2(b)(6), Income Tax Regs.
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