- 8 -
During 1993, petitioner worked about 35-37 hours a week as a
litigation specialist, and Mr. Pitts, not working because of his
disability, would feed and water the horses every day. After
work, petitioner cleaned the stalls and did the heavy work that
Mr. Pitts could not do. Petitioner consulted her breeding charts
to see if any mares were due to breed, and she would do the
breeding. Ding Dong Daddy was the stud used by petitioner in
1993.
For 1993, petitioner earned $52,815, and Mr. Pitts collected
$11,6597 in Social Security benefits. On their Schedule C for
1993 petitioners listed Midget Acres as their business. They
reported $2,8028 in gross income and claimed the following
expenses:
Expense Amount
Car and truck $2,182
Depreciation 1,818
Office 72
Dues and subscriptions 161
Feed 6,854
Shoeing 400
Trash 744
Vet fees 1,501
Total 13,732
This resulted in a net loss of $10,930. Petitioners retained
receipts for the horse-related expenses.
7 Of this amount, $5,830 was taxable.
8 We note that petitioners’ chart shows that they collected
$2,892. This discrepancy was neither noticed nor explained but
is irrelevant in light of our holding on the sec. 183 issue.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Next
Last modified: May 25, 2011