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shows nothing else about what, if anything, petitioner did with
or for (1) Jill and Gator during 1990 and (2) Moonshadow, Jill,
Gator, and Zack during 1991.
Petitioner did not during the years at issue (or at any
other time) project the future income, expenses, or profits that
he expected would be generated by his horse activity. Nor did he
contemplate or inquire about the risks associated with owning
Moonshadow if it were to become lame (i.e., not only could it not
continue its training in, or be used for, any of the activities
that petitioner had in mind when he acquired Moonshadow, it also
could not be used for breeding since it was a gelding).
During the years at issue, although petitioner retained
invoices, receipts, and canceled checks relating to the expenses
that were incurred in his horse activity, he did not maintain a
separate bank account for that activity or books or records, such
as ledgers and registers, to memorialize the various transactions
relating thereto or to maintain a historical record of that
activity (e.g., the dates on which horses were purchased and
foals were born, the specific nature of any training that the
horses that he owned received, and the specific periods during
which any such training was provided). In short, petitioner
failed to show that during the years at issue he maintained
complete and accurate books and records that were consistent with
a profit motive or that he carried on his horse activity in a
businesslike manner.
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