- 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.
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Last modified: May 25, 2011