Hugh T. Brown, Jr., and Kristi L. Brown - Page 20




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          objective, especially if there are personal or recreational                 
          elements involved.                                                          
               The Browns are not wealthy people.  During the years in                
          issue, petitioner reported wages of $34,689 and $42,811,                    
          respectively, while Mrs. Brown did not work for compensation.               
          Their only source of income was petitioner’s wages.  Although               
          petitioners were able to offset the full amount of the losses               
          from their gold mining activity against Mr. Brown’s wages, the              
          resulting tax benefits to petitioners were not very substantial.            
          This activity was not a tax shelter.  This factor favors                    
          petitioners.                                                                
               9.  Elements of Personal Pleasure or Recreation                        
               The presence of personal or recreational elements in                   
          carrying on an activity may indicate that the activity is not               
          engaged in for profit.  On the other hand, a profit objective may           
          be indicated where an activity lacks any appeal other than                  
          profit.  Sec. 1.183-2(b)(9), Income Tax Regs.                               
               At trial, no significant testimony or evidence was presented           
          about any personal pleasure or recreational aspects of gold                 
          mining that petitioner may have enjoyed.  Nearly every week                 
          during the years in issue, petitioner sacrificed his entire                 
          weekend with his family to travel alone into the deserts of                 
          southern California to mine for gold.  Family members rarely                
          accompanied him.  Also, the risks of injury petitioner faced on             






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