Louis A. Filios and Estate of Emma L. Filios, Deceased, Louis A. Filios, Executor - Page 14

                                        - 14 -                                         
          activity from 1955 to 1993, and that his use of these different              
          approaches shows that petitioner had a profit motive.  Landry                
          testified that petitioner:  (a) Emphasized vitamins and minerals             
          without regard to bloodlines and racing success; (b) increased               
          the number of horses; (c) used improved bloodlines with unproven             
          racing success; and (d) used improved bloodlines with proven                 
          racing success.                                                              
               The use of vitamins was not a change in how petitioner                  
          operated.  Petitioner adhered to that idea from 1955 through the             
          years in issue.  Petitioner increased the size of his herd from              
          1955 to 1975, but that was not a change in how he operated.                  
               Around 1976, petitioner began to breed his horses to                    
          stallions which had improved bloodlines and unproven racing                  
          records.  Petitioner continued to use stallions with improved                
          bloodlines and unproven racing records through the years in                  
          issue.  Petitioners contend that in 1990 or 1993 petitioner                  
          changed his methods by breeding his horses to horses with                    
          excellent pedigrees and proven racing records.  Petitioners also             
          contend that the facts that petitioner occasionally changed                  
          trainers and breeders, that he decided which horses to buy, and              
          that he gave away horses to cut costs, show that he intended to              
          make a profit.                                                               
               We disagree.  Petitioner's method of operations generally               
          continued unchanged for more than 30 years.  Petitioner never                
          sought advice on how to make his horse activity profitable, and              

Page:  Previous  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  Next

Last modified: May 25, 2011