7
Year Farm Expenses Farm Losses Farm Gross Income Medical Corp.
1986 $47,698 $50,598 ($2,900) $370,056
1987 79,230 78,430 800 646,554
1988 109,216 109,216 0 497,333
1989 141,857 135,742 6,115 479,500
1990 132,987 117,420 15,567 498,521
1991 137,882 121,857 16,025 540,258
1992 119,934 103,196 16,738 232,942
Total 768,804 716,459 52,345 3,265,164
The negative farm gross income in 1986 was the result of a
reported loss on the sale of a horse. Some of the farm expenses
claimed from 1986 through 1992 are as follows:
Mortgage Repairs/
Year Depreciation Interest Taxes Labor Feed Maintenance
1986 $2,915 -- -- -- -- --
1987 7,815 $14,074 $1,305 $1,183 $7,509 --
1988 24,627 21,461 1,787 15,692 11,285 $696
1989 24,966 28,372 1,582 20,161 16,338 6,273
1990 26,024 27,583 297 19,427 11,379 14,667
1991 25,497 22,960 1,537 21,999 15,291 15,092
1992 27,065 24,470 2,076 24,845 9,601 7,614
OPINION
A. Relationship Between Petitioners' Ranching Activity and Their
Medical Corporation
Petitioner claims that he participated in polo as a means of
obtaining clients, and that therefore the ranching activity and
the medical corporation should be considered as one activity for
purposes of determining the overall profitability of the ranch.
Respondent contends that the two activities are separate for
purposes of section 183.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011