- 14 - computer data was lost sometime thereafter and petitioners resumed keeping their receipts and handwritten summaries. 6. Petitioners’ Personal Enjoyment of Horses Petitioners ride their horses only to train or show them. Petitioners’ children and grandchildren do not ride petitioners’ horses. Petitioner finds his Arabian horse activity to be rewarding. He enjoys showing the horses, competing at the shows, and the camaraderie of other horse people at the shows. Petitioner does not enjoy the amount of driving that is required to participate in horse shows or to train petitioners’ horses at McDannalds. 7. Petitioners' Gross Income, Appreciation, and Horse-Related Losses Petitioners reported the following amount of taxable income on their tax returns from 1990 to 1996: Taxable income Horse (other than expenses horse Horse including Horse Taxable Year activity) income depreciation Depreciation lossesincome 1990 $263,832 -0- ($10,938) ($3,600) ($10,938) $252,894 1991 49,749 $120 (20,544) (6,369) (20,424) 29,325 1992 46,824 205 (19,652) (4,729) (23,935) 22,889 1993 44,498 190 (23,346) (3,912) (23,172) 21,326 1994 57,596 295 (26,018) (4,493) (25,723) 31,873 1995 60,215 519 (33,478) (3,490) (32,959) 27,256 1996 55,969 434(29,164) (2,572) (28,730) 27,239 Petitioners reported on financial statements dated August 11, 1992, and June 11, 1993, that their horses were worth $34,000. They reported on a financial statement dated July 21, 1995, that their livestock was worth $80,500.Page: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Next
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