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Cases following Burger are replete with analogous
statements. In Underwood v. Commissioner, supra, the taxpayers
were “successful in business” and “experienced investors”, but
“Despite this business background, * * * failed to adequately
investigate” their new venture before embarking. The Court in
Dodge v. Commissioner, T.C. Memo. 1998-89, likewise opined with
regard to a taxpayer admittedly “expert and knowledgeable about
horses”: “Significantly, petitioners did not seek professional or
economic advice on the economic aspects of horse breeding.” A
nearly identical emphasis is seen in Sanders v. Commissioner,
supra: “While petitioner received free and paid advice from
individuals he considered ‘experts’ in the cutting horse
industry, the advice did not focus on the economic aspects of the
activity.”
Viewing the present matter in light of these judicial
pronouncements, petitioner here is similarly bereft of the
requisite economic expertise. He had no previous experience with
the cattle-ranching business. No advice with regard to the
economic side of the venture was ever sought prior to or during
the years at issue. Furthermore, even attempts to gain expertise
regarding the operational side of a cattle ranch were both tardy
and minimal. Petitioner did not ask a cowboy for an informal
opinion on whether the land had sufficient grass for cattle until
June of 1993. He did not obtain a professional analysis of the
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