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years in issue.2 Petitioner's limited advertisements do little
to show that she conducted her activity in a businesslike manner.
g. Emerson
Emerson testified that petitioner operated her activity in a
businesslike manner. We disagree. Emerson first met petitioner
in 1993 or 1994. He did not know how much she earned from stud
and boarding fees or the sale of foals. He never saw business
records or a business plan for petitioner.
Emerson was a member of the U.S. Equestrian Team that
competed in the 1974 world championships and the 1976 Olympics.
He was national 3-day champion in 1976 and 1979. Emerson
attributes his financial success to his personal fame.
Petitioner lacked this advantage.
Emerson received gross receipts of about $50,000 from
breeding 3 stallions and 75 to 80 mares. The rest of his income
was from clinics and training. Petitioner had one lame stallion
and a few mares. She had no income from training or clinics.
Emerson's conclusion that breeding Temptation could have
been profitable is not enough to show that petitioner had an
actual and honest profit objective.
This factor favors respondent.
2 Petitioners deducted advertising expenses of $878 for
1988, $628 for 1989, and $632 for 1990. The record includes no
information about these expenses. In 1991, petitioner advertised
that Labrette was for sale.
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