Kenneth J. Nissley and Terri C. Connor Nissley - Page 21

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            See sec. 1.183-2(b)(3), Income Tax Regs.  However, we regard                               
            petitioners’ estimate as excessive.  See Kropp v. Commissioner,                            
            T.C. Memo. 2000-148 (“As a trier of fact, it is our duty to                                
            listen to the testimony, observe the demeanor of the witnesses,                            
            weigh the evidence, and determine what we believe.”); see also                             
            Tokarski v. Commissioner, 87 T.C. 74, 77 (1986) (“we are not                               
            required to accept the self-serving testimony of petitioner * * *                          
            as gospel.”); cf. Diaz v. Commissioner, 58 T.C. 560, 564 (1972).                           
            In any event, many individuals devote considerable time to their                           
            hobbies and similar activities.                                                            
                  In view of the foregoing, we hold that petitioners are not                           
            entitled to deduct the losses from their Amway activity for the                            
            years in issue.  However, pursuant to the provisions of section                            
            183(b), petitioners are entitled to deduct expenses to the extent                          
            of gross income from their Amway activity.                                                 
                  We have carefully considered all of the contentions made by                          
            petitioners for a holding contrary to that expressed herein, and                           
            to the extent not touched on above, we find such contentions to                            
            be unpersuasive.                                                                           
                  To give effect to the foregoing,                                                     

                                                      Decision will be entered                         
                                                under to Rule 155.                                     

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