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purpose and dominant hope and intent of making a profit within
the meaning of section 183.
II. Failure To Timely File
The section 6651(a)(1) additions to tax for 1988, 1989, and
1990 were based on: (1) The deficiencies determined by
respondent (the deficiency portion); and (2) amounts petitioners
listed on their 1988, 1989, and 1990 Federal income tax returns
as due and owing (the return portion). As a result of our
holding that Mr. Morley engaged in the horse-breeding activity
for profit, petitioners are not liable for the 1985 through 1991
deficiencies. Therefore, petitioners are not liable for the
amounts of the section 6651(a)(1) additions to tax attributable
to the deficiency portion. As the remaining amounts of the
section 6651(a)(1) additions to tax are attributable to the
return portion, and not to the deficiencies, we have no
jurisdiction over these additions. See sec. 6665(b); Meyer v.
Commissioner, 97 T.C. 555, 562 (1991).
To reflect the foregoing,
Decision will be entered
for petitioners.
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