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greater tax incentive to incur large expenditures in a hobby type
of activity. Jackson v. Commissioner, 59 T.C. 312, 317 (1972).
Although petitioner was successful as an attorney and CPA,
petitioner did not earn income from these pursuits substantial
enough to motivate him to incur losses from the farming activity.
Cf. Jackson v. Commissioner, supra; Bessenyey v. Commissioner,
supra. The size of the farming activity losses claimed during
1998 and 2000 was small in whole dollar amounts given
petitioners’ marginal income tax bracket. This factor favors
petitioner.
9. Elements of Personal Pleasure or Recreation
We finally consider whether elements of personal pleasure or
recreation were involved in petitioner’s farming activity. The
presence of personal motives for, or recreational elements
associated with, conducting the activity may indicate that the
taxpayer does not have a profit motive. Jackson v. Commissioner,
supra; sec. 1.183-2(b)(9), Income Tax Regs.
Petitioner grew up on the family farm and inherited it in
1992. While farming does involve hard manual labor, petitioner
enjoyed doing the work. Petitioners have resided on the family
farm since 1991, an additional personal motive for engaging in
the farming activity. This factor is neutral.
10. Conclusion
The nine nonexclusive factors and the facts and
circumstances of this case lead us to conclude that petitioner
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