- 5 -
The item “Livestock, produce, grains, and products raised” of
$7,000 for 1992 is proceeds from the sale of one or more horses.
The item “Other income” of $36,801 and $21,228 for 1992 and 1993,
respectively, is proceeds (winnings) from horse shows.
During 1992, petitioner sold another two horses (not
reported on the 1992 Schedule F), one at a gain of $534 and one
at a loss of $7,260. During 1993, petitioner sold three horses
(not reported on the 1993 Schedule F), all at a gain, for a total
gain of $21,507.
Schedules F attached to petitioners' joint returns for 1986
through 1996 show income, deductions, and losses as follows:
Year Income Deductions Loss
1986 $18,282 $54,165 $35,883
1987 225 51,394 51,169
1988 1,571 98,706 97,135
1989 6,539 123,517 116,978
1990 16,494 164,907 148,413
1991 30,107 171,709 141,602
1992 43,801 257,639 213,838
1993 21,228 291,141 269,913
1994 66,137 307,478 241,341
1995 54,312 422,587 368,275
1996 27,106 120,794 93,688
Each year’s income is composed of one or two categories: “Sales
of livestock, produce, grains, and other products you raised”; or
“Other income”. Petitioners began claiming expenses for horse
shows beginning in 1987. For 1987 through 1996, petitioner’s
horse show expenses, gross income reported from horse shows, and
the excess (except for 1994 and 1996) of horse show expenses over
horse show income were follows:
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011