- 11 - effect to these types of arrangements in the case of a parent and child. See, e.g., Nova v. Commissioner, supra. Mr. Carino admitted at trial that he derived some degree of personal enjoyment from his involvement in his daughter’s dancing activities; however, he claims that just because someone enjoys an activity should not be conclusive with respect to the issue before us, citing the enjoyment he derives from his legal practice. The satisfaction Mr. Carino derives from his legal practice cannot be compared in principle to the satisfaction he derives in guiding his daughter in her endeavors. With respect to his daughter’s dancing activities, the personal satisfaction to Mr. Carino is so substantial in our view that it constitutes the primary motivation for engaging in the activity, especially where, as here, the possibility of making a profit is so very small. See Bush v. Commissioner, supra; Stasewich v. Commissioner, T.C. Memo. 2001-30; Burger v. Commissioner, T.C. Memo. 1985-523, affd. 809 F.2d 355 (7th Cir. 1987); sec. 1.183- 2(b)(9), Income Tax Regs. Mr. Carino is a successful attorney engaged in a profitable legal practice. Together, he and his wife reported substantial annual income during the times relevant herein. However, they also expended considerable amounts in furtherance of their daughter’s dancing activities. They seek here to offset their income in 1996 by the expenses Mr. Carino incurred with respectPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011