-15-
profit objective. Bolt v. Commissioner, 50 T.C. 1007, 1014-1015
(1968).
Petitioner has occasionally won jackpots as large as $50,000
from her gambling activity. Petitioner won sums of $1,200 or
more over 300 times in 2003. Her frequent wins and occasional
big wins indicate the possibility that petitioner could have
earned enough to cover her expenses in a year. This factor
favors petitioner.
Financial Status of the Taxpayer
We next examine petitioner’s financial status. If a
taxpayer does not have substantial income or capital from sources
other than the activity in question, it may indicate that the
taxpayer engages in the activity for profit. Sec. 1.183-2(b)(8),
Income Tax Regs. Conversely, substantial income from sources
other than the activity, especially if the losses generate large
tax benefits, may indicate that the taxpayer is not conducting
the activity for profit. Id. Those with substantial income from
other sources have a much greater tax incentive to incur large
expenditures in a hobby type of business. Jackson v.
Commissioner, 59 T.C. 312, 317 (1972).
Petitioner earned $64,000 from the trucking business in
2003. Merely because petitioner had another source of income in
2003 is not dispositive, however. See Calvao v. Commissioner,
supra. None of petitioner’s income from the trucking business
could be offset by gambling losses due to the limitation on
deducting gambling losses only to the extent of winnings. See
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