Joyce E. Hastings - Page 8




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          Year           Expenses            Income       Losses                       
          1989        $7,025              -0-        $7,025                            
          1990        12,838             $305        12,533                            
          1991        12,994              -0-        12,994                            
          1992        19,667              447        19,220                            
          1993       121,531              -0-        21,531                            
          1994        26,876              -0-        26,876                            
          1995        31,322              -0-        31,322                            
          Totals    $132,253             $752      $131,501                            
               1 On her tax return, petitioner reported $21,531 of expenses            
          and income of $10,402 for a net of $11,129.  The parties,                    
          however, stipulated that petitioner had no gross receipts from               
          the horse activity in 1993.  Accordingly, for purposes of our                
          analysis, we assume that petitioner’s claimed expenses and losses            
          are the same.                                                                
               Petitioner did not maintain a separate bank account for her             
          horse activity, but she did keep separate records for each horse.            
          In order to distinguish expenditures for her horse activity from             
          others, she marked an “H” on those checks written for the                    
          activity.  In addition, horse activity invoices or bills                     
          underlying each check expenditure were kept separately for each              
          horse and accumulated and maintained on a monthly basis.                     
               The annual specific records for each horse contained                    
          information regarding pedigree, pictures and information about               
          the sire and dam, medical history, pictures of the specific                  
          horse, breeding information, medical information, insurance                  
          information, and training records.  Petitioner also maintained               
          numerous specific-topic horse activity files containing such                 
          information and documents as:  Forms, horses for sale, health                
          tips, boarding and training information, equipment information,              






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Last modified: May 25, 2011