- 5 - Custom hire 1,600 Horse feed 539 Hay 2,215 Insurance 818 Mortgage interest 1,666 Other interest 1,495 Labor hired 2,250 Boarding 4,435 Miscellaneous 1,800 Repairs/maintenance 2,275 Supplies 5,307 Taxes 1,892 Veterinarian 1,070 Jockey fees 66 Legal fees 250 License 25 Breeding fees 4,250 Horse showing 100 License 25 The deduction for supplies appears to represent amounts spent to build or substantially improve a barn. The above deductions total $32,137. For reasons unexplained, on the line designated “Total expenses” on the Schedule F, petitioners entered $29,495.94. This amount was apparently used in calculating the reported net farm loss of $29,195.68. In the notice of deficiency, respondent disallowed all of the expenses claimed on the Schedule F. Discussion Consistent with the manner in which petitioners filed their 1994 return, they contend that the deductions claimed on the Schedule F are allowable as trade or business expenses.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011