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tournament fishermen. Petitioner’s fishing activity is
occasionally demanding and exhausting. The Court is convinced,
however, that petitioner’s bass fishing was akin to a hobby
enjoyed in his spare time and which, as a bonus, provided him an
opportunity for occasional income and less income tax.
The Court has considered all other arguments advanced by the
parties, and, to the extent such arguments have not been
specifically addressed, the Court concludes they are without
merit. Each factor set out in section 1.183-2(b), Income Tax
Regs., was considered; while some of the factors support a profit
objective, other factors discussed outweigh the profit motive.
The Court, therefore, is not convinced that petitioner was
engaged in a trade or business for profit. Respondent,
therefore, is sustained. However, as noted earlier, supra note
4, respondent allowed petitioner a miscellaneous itemized
deduction of $892 for expenses incurred in the activity. As an
itemized deduction, the 2-percent floor of section 67(a) would be
applicable. Respondent erred in the treatment of the $892 in
this fashion. Under section 183(b)(2), the $892 is allowable as
an offset to the gross receipts, thus eliminating the 2-percent
limitation.
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