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benefits. Engdahl v. Commissioner, supra at 669-670; sec. 1.183-
2(b)(8), Income Tax Regs.
Petitioner works as a computer specialist for the IRS.
During the years in issue, petitioner received wage income from
his work with the IRS averaging $65,000 annually. In addition,
during the years in issue, petitioner reported average income
from his work as a high school basketball referee of $3,000.
Petitioner claimed business losses averaging $23,000 per
year against his wages and income from refereeing during the
years at issue, thus enabling petitioner to receive a
considerable after-tax benefit in the form of a refund. We find
that petitioner’s considerable income from his employment with
the IRS, as well as his income from work as a game referee,
weighs in favor of respondent.
Elements of Personal Pleasure or Recreation
The elements of personal or recreational motive in
conducting an activity may indicate that the taxpayer is not
conducting the activity for profit. Sec. 1.183-2(b)(9), Income
Tax Regs. The fact, however, that the taxpayer derives personal
pleasure from engaging in the activity does not show that the
taxpayer lacks a profit objective if the activity is, in fact,
conducted for profit as evidenced by other factors. Id.
The record in this case is replete with statements that
petitioner not only gained great pleasure in the reputation that
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