- 4 -
Depreciation 6,183 7,058
Feed purchases 2,937 2,277
Insurance -- 399
Conservation 337 --
Interest 2,876 1,361
Labor -- 1,298
Repairs & maintenance 2,790 1,364
Supplies purchased 2,102 1,921
Veterinary fees 143 --
Taxes -- 151
Legal & accounting 125 --
Total 20,215 18,817
Petitioner claimed net farm losses in the amounts of $19,147 and
$17,617 for the taxable years 1990 and 1991, respectively.3
To date, petitioner has not reported a net profit in any
year from his ranching activities. At trial petitioner explained
that some of the losses in prior years were due to the theft or
death of some of his herd. Petitioner produced no records,
however, nor could he recollect the exact number of such thefts
or deaths, or the year in which they took place.
Petitioner concedes that he does not use a written budget to
control costs. Furthermore, petitioner concedes that he has
never consulted an expert regarding available means by which he
could make his efforts profitable. Petitioner has, however,
spoken about his cattle with a veterinarian friend, a lending
3Although the taxable year 1989 is not at issue, the parties
stipulated that petitioner reported a net loss from his ranching
activities that year in the amount of $18,514. Furthermore, as
demonstrated by copies of petitioner's 1987, 1988, 1992, and 1993
Federal income tax returns admitted at trial, petitioner reported
net losses from his ranching activities those years in the
amounts of $22,691, $15,566, $9,233, and $15,587, respectively.
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