- 6 -
adjacent property, including a small barn and seven stalls, and
enclosed the area with fencing. Later, a 20-stall barn was
built. In an effort to reduce expenses during the years at
issue, petitioners increased the number of hours each spent
working on their horse activity. They performed simple
veterinary tasks such as worming the horses and giving them
shots. Petitioners began buying veterinary supplies from
different catalogs rather than tack shops and boarding their
horses on the adjacent 2-acre parcel when they were not racing.
Also during the years at issue, petitioners eliminated their farm
help and performed by themselves such activities as cleaning the
stalls and feeding and grooming the horses.
Ms. Taras maintained the books and records of petitioners’
horse racing and breeding activity. Petitioners offered a
detailed summary of expenses associated with their activity,
which included monthly expenses for feed, veterinarians,
trailering, jockey club fees, tack, boarding, farriery, breaking,
training, stud services, legal fees associated with the activity,
and other miscellaneous items. Ms. Taras also kept a summary of
the dates they acquired their horses, the purchase prices, and
the proceeds received if a horse were sold.3 These records also
3The following is a list of the horses purchased and the
calculation of gain or loss on each horse:
(continued...)
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