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
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