- 35 -
time-consuming, physically exhausting, and dirty. In fact, the
parties stipulated that she regularly performed hard manual and
menial labor at the stables, including exercise and training of
steeplechase horses in good weather and bad, feeding and grooming
horses, cleaning tack and other equipment, washing blankets and
bandages, mucking out stalls, cleaning and disinfecting the
stables, and transporting the horses to races. Gillian
Johnston's personal effort is highly persuasive evidence of her
profit motive, especially given that she had the financial means
to hire as many stable hands and grooms as she wanted.
With respect to expenses, we note that on brief, respondent
conceded that Gillian Johnston "scrupulously watches costs,
shopping around for the best deals on feed and equipment and
repairing equipment rather than throwing it away."
We note that although GJ's operations were unsuccessful
during the years at issue, racing businesses are highly
speculative and risky by nature. The activity, however, provided
Gillian Johnston an opportunity to earn substantial profits by
having her horses compete for large purses. GJ has had some
successes, winning as much as $25,000 in one race. The current
purses at some of the races in which GJ's horses compete exceed
$100,000. We note that an opportunity to earn a substantial
ultimate profit in a highly speculative venture is ordinarily
sufficient to indicate that the activity is engaged in for profit
Page: Previous 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 NextLast modified: May 25, 2011