Rodney W. Taras and Linda K. Taras - Page 20

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          their horse racing and breeding activity for 16 consecutive                 
          years.                                                                      
               Petitioners argue that their losses occurred because of                
          unforeseen circumstances.  A portion of petitioners' losses can             
          be explained by a series of unfortunate events beyond their                 
          control.  In 1983, petitioners were involved in a dispute with              
          their first trainer, Ms. Audrey Kraynik, over the ownership of a            
          stud horse named Distinctive Jet, which resulted in the loss of             
          Distinctive Jet.  Also, as a result of the dispute, petitioners             
          could not register their foals from Distinctive Jet with the                
          Jockey Club, which prevented petitioners from racing any of the             
          foals.                                                                      
               Petitioners’ horses sustained numerous injuries, which                 
          contributed to their losses.  Some of the injuries were as                  
          follows:  Liberty Knoll broke a bone in her leg, an accident                
          which ended in her death; Talitha jumped out of a trailer while             
          being transported; Bad Memories suffered bone chips in her knee;            
          Captain’s K developed tendon problems; Naughty Castle suffered              
          injuries to her leg and foot; and several of petitioners' other             
          horses suffered injuries as well.  These injuries prevented                 
          petitioners from racing the injured horses.                                 
               A number of the aforementioned injuries occurred to horses             
          which were originally purchased by petitioners in 1980.  The                
          injuries to Liberty Knoll, Captain's K, Bad Memories, and Naughty           






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