Robert A. Eder - Page 13




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          is indicative of a lack of profit objective.  This factor favors            
          respondent.                                                                 
          9.   Elements of Personal Pleasure or Recreation                            
               Personal or recreational aspects of an activity may indicate           
          that the activity was not conducted with a profit objective.                
          McKeever v. Commissioner, T.C. Memo. 2000-288; sec. 1.183-                  
          2(b)(9), Income Tax Regs.  The mere fact that a taxpayer derives            
          pleasure from an activity, however, does not show a lack of a               
          profit objective if the activity is, in fact, conducted for                 
          profit as evidenced by other factors.  Sec. 1.183-2(b)(9), Income           
          Tax Regs.; see also Jackson v. Commissioner, 59 T.C. 312, 317               
          (1972).                                                                     
               As previously discussed, we believe there were some personal           
          or recreational aspects to petitioner’s Reliv activity, such as             
          attending weekly meetings and contacting family members.  In                
          addition, as a Reliv distributor, petitioner presumably would               
          enjoy a discount for Reliv products, similar to the discount that           
          motivated his brother and his son to become involved as Reliv               
          distributors.  The record indicates that petitioner was a long-             
          time user of Reliv products.  It would appear that the ability to           
          purchase Reliv products at a discount was a significant personal            
          benefit to petitioner.  This factor favors respondent.                      










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