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returns for 2002 and 2003. Therefore, the Court has no
information in the record regarding the history of income or loss
from those activities.
Factor (8): The Financial Status of the Taxpayer
Petitioner had substantial income from his automotive sales
employment during the year in issue. Based on the record, it
appears he was financially capable of supporting the losses
generated by Mrs. Cooper’s horse barrel-racing activities.
Factor (9): Elements of Personal Pleasure or Recreation
The presence of personal motives in carrying on an activity
may indicate that the activity is not engaged in for profit,
especially where there are recreational or personal elements
involved. Sec. 1.183-2(b)(9), Income Tax Regs.; see also
Commissioner v. Groetzinger, 480 U.S. 23, 35 (1987)(where the
Court stated that a hobby or amusement diversion does not qualify
as constituting a profit objective.)
Mrs. Cooper has been an avid rider of horses since early
childhood. Additionally, in conducting her horse-related
activities, she gave riding lessons without charge and failed to
pursue memberships that would have enabled her to obtain
independent financing of her activities. Based upon the facts
presented, the Court concludes that Mrs. Cooper engaged in her
horse barrel-racing activities primarily for recreation and
personal pleasure.
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