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Mrs. Whitehurst did not maintain or produce to either
respondent’s agent or the Court a journal or a book of accounts
for the bowling activity. Mrs. Whitehurst, however, maintained
and produced numerous hotel, restaurant, gasoline, credit card,
and rental car receipts, airplane tickets, copies of canceled
checks, bank records, and bowling tournament score sheets that
reflect the expenses incurred with respect to the bowling
activity. Mrs. Whitehurst recorded her expenses by “just jotting
information down on the tournament flyer” because the tournaments
were hectic. While her records were somewhat disorganized and
partially incomplete, they generally reflect her receipts and
expenses. Petitioners did not maintain a separate bank account
for the bowling activity.
Because Mrs. Whitehurst had not been able to win any of the
large tournaments offering large prize winnings (i.e., $20,000 or
$40,000), she changed her strategy during 1998 and decided to
compete in more local and smaller tournaments. In 1999, Mrs.
Whitehurst changed her strategy again and she decided to compete
in more tournaments in Florida that offered the larger prize
winnings. She stopped competing in tournaments in 2000. Her
changes in strategy and ultimate decision to stop competing in
tournaments both support her claim that she entered into the
activity with a profit objective. See id.
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