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The record confirms that mining is an extremely laborious
activity that requires substantial time, energy, and financial
support. Mining also entails numerous health risks, including
heat prostration in the summer months, silicosis, and cyanide
poisoning. Despite these risks and hardships, there is evidence
suggesting that petitioner derives some personal pleasure from
his mining activities. During the audit and at trial, petitioner
acknowledged that he enjoyed being outdoors, and that he was
“tired of dealing with sick people”.
On balance, we are convinced that the small element of
personal pleasure that petitioner derived from being outdoors and
from his reduced involvement in his medical practice did not
outweigh the hardships and danger involved in the mining activity
or the substantial depletion of petitioner’s royalty income and
Zila stock. Moreover, some component of personal pleasure does
not negate a bona fide profit motive. “[A] business will not be
turned into a hobby merely because the owner finds it
pleasurable; suffering has never been made a prerequisite to
deductibility. ‘Success in business is largely obtained by
pleasurable interest therein.’” Jackson v. Commissioner, 59 T.C.
312, 317 (1972) (quoting Wilson v. Eisner, 282 F. 38, 42 (2d Cir.
1922)); see also sec. 1.183-2(b)(9), Income Tax Regs.
This factor favors petitioner’s position.
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