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A. Whether DF #1, SGE 82-1, DGE 84-3, SGE 84-5, DGE 86-2,
TBS 89-1, and TBS 90-1 Acquired the Benefits and Burdens of
Ownership as to Specific Breeding Cattle
For DF #1, SGE 82-1, DGE 84-3, SGE 84-5, DGE 86-2, TBS 89-1,
and TBS 90-1 to be entitled to their claimed depreciation
deductions, each partnership must establish that it acquired the
benefits and burdens of ownership as to the specific individual
breeding cattle making up its alleged breeding herd. In that
connection, however, the record discloses petitioners to be in
substantial difficulty in establishing that each partnership
actually acquired anywhere near its stated number of breeding
cattle. Indeed, the evidence petitioners presented to
substantiate and identify the specific individual breeding cattle
these partnerships “owned” is considerably lacking, exhibits
major shortcomings, and, at times, is directly contradicted by
the Hoyt organization’s own internal documents. Certain of these
internal documents raise serious doubts in the Court’s mind as to
whether large numbers of the breeding cattle allegedly sold these
partnerships, in fact, existed.
No registration papers with respect to specific breeding
cattle were obtained in any partnership's name. Rather, any
registration certificates reflect only the Hoyt family to be the
owner of those registered cattle.14
14Unlike the parties in River City Ranches #4, J.V. v.
Commissioner, T.C. Memo. 1999-209 (a case involving similar
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