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that he had no specific concept for operating a profitable tree
farm shows that he did not have a business plan.
Petitioners contend in their brief that they planned to
plant about 500-1000 seedlings each year and to sell 300-1000
trees for $9,000-$30,000 per year around years 10 to 12.
However, statements in a brief are not evidence. See Rule
143(b); Niedringhaus v. Commissioner, 99 T.C. 202, 214 n.7
(1992); Viehweg v. Commissioner, 90 T.C. 1248, 1255 (1988).
Petitioners contend that petitioner made income projections
for the tree farm. However, we have not so found because
petitioners offered no evidence to support that contention.
Petitioner kept records of income and expenses for his tree
farm to substantiate the deductions petitioners claimed on their
1994 and 1995 returns. These records do not establish that their
tree farm had profit potential.
Petitioners contend that they tried to make their tree farm
profitable without spending large amounts of money other than for
the pond. However, they offered no evidence of the amount of
expenses or sales they expected to have. There is no evidence in
the record showing that enough of petitioners’ trees will be
available for sale to enable them to make a profit.
Petitioners contend that they made numerous changes in their
operations to improve their profit potential. We disagree.
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