- 12 - 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.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 NextLast modified: March 27, 2008