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petitioners’ gross receipts in 1995 from (a) hay were less than
in 1981, 1982, 1987, and 1993; (b) stud fees were less than from
1984 to 1987, the same as in 1988, and less than from 1989 to
1994; and (c) boarding fees were less than in 1993 and 1994.
Petitioners contend that this case is like Feistman v.
Commissioner, T.C. Memo. 1982-306, affd. 718 F.2d 1110 (9th Cir.
1983), in which we held that a taxpayer changed a stamp and coin
collecting hobby to a business. We disagree. During the years
in issue, the taxpayer in Feistman undertook activities
consistent with those of a retailer and inconsistent with those
of a hobbyist. He (a) bought 100 first day covers for each new
stamp issued, far more than he needed as a collector; (b)
regularly displayed merchandise for sale at shows and swap meets;
(c) received a business tax registration certificate with a
“retail sales” classification; (d) bought and sold inventory; and
(e) received authority from credit card companies to accept
charges. The taxpayer in Feistman changed his activity in
several respects that showed that he operated it for profit.
Petitioners did not.
We do not treat 1995 as the first year of petitioners’ horse
and farm activity.
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