- 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