Suffering Has Never Been Made a Prerequisite to Deductibility.

I came across this in one
of my readings. I really like the hi-lighted quote – future reliance on that
quote could be quite interesting…

Income Tax—Hobby Loss: Taxpayer is a Certified Gilder Flight
Instructor who performed flight instruction for the Boeing Employees Soaring
Club. On 8/1/03, he formed an LLC to provide private glider flight instruction
and glider plane rides. The LLC conducted activities primarily on weekends from
March through November during times of good visibility. For promotion, taxpayer
maintained a website, distributed flyers at airports and aviation-related
businesses, and advertised in a flying publication. Nevertheless, the IRS
audited his 2005, 2006, and 2007 income tax returns and decided that the glider
activities were not conducted with the intent of making a profit under IRC Sec.
183. The Tax Court disagreed after going through the (nonexclusive) list of
factors in Reg. 1.183-2(b) for determining whether a person is engaged in an
activity for profit. In particular, the Tax Court noted that a business “will not be
turned into a hobby merely because the owner finds it pleasurable; suffering
has never been made a prerequisite to deductibility.” William Weller, TC Memo 2011-224 (Tax
Ct.).