Christopher Joseph Bush and Robin Leigh Pickering - Page 12

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          $138,890 in the first 40 months of her dance career for                     
          petitioner to break even on his investment.  See DeMattia v.                
          Commissioner, supra; Nova v. Commissioner, supra.                           
               Petitioner makes repeated references to the fact that he was           
          unable to afford to send his stepdaughter to VSA without her                
          working part-time jobs to help with expenses.  Petitioner asserts           
          that as a result of his financial status this factor necessarily            
          falls in his favor.  We disagree.  Pearson v. Commissioner, T.C.            
          Memo. 1996-66.  Petitioners’ income from wages in 1996 was                  
          $21,584.  In addition, petitioner received $11,700 in gross                 
          receipts from activities related to his chess company.                      
          Petitioners were by no means wealthy; however, the deductions               
          with respect to Aspiring Artists reduced their tax liability.  In           
          addition, petitioners benefited from the personal pleasure                  
          involved in watching their daughter grow into a ballerina.  Even            
          if we were to find that this factor supported petitioners’                  
          position, it would not outweigh the other factors.                          
               The existence of personal or recreational elements in an               
          activity may indicate that the activity is not engaged in for               
          profit.  Where an activity, however, lacks any appeal other than            
          profit, a profit objective may be indicated.  See sec. 1.183-               
          2(b)(9), Income Tax Regs.  Where the possibility of making of               
          profit is small (given the other factors) and the personal                  
          satisfaction is substantial, it is clear that the latter                    

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