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Harness Racing
Petitioner’s testimony regarding harness racing consisted of
the following:
This horse thing was a matter of--I wanted to grow
colts. I ended up having to pull * * * some horses--
these were harness horses too, by the way; they’re not
thoroughbreds. They’re like the old fairs that people
used to have. You might be familiar with the Ohio
Fair, which has got the little brown jug, and all the
farmers would have harness horses that pulled the carts
to go. That’s the kind of horses that I had, and
started out trying to have a brood mare band and of
course, that didn’t fare very well either. * * *
Other than this testimony, petitioner alluded to the death
of a horse and some insurance payment. However, in the absence
of any explanation by petitioner elaborating on this, we are
unable to determine what, if anything, this has to do with his
harness-racing activities. In short, petitioner failed to
present any evidence that he engaged in the activity for profit.
Furthermore, petitioner also failed to substantiate the claimed
losses. Accordingly, respondent’s determinations with respect to
petitioner’s claimed “harness-racing” losses for 1990 are
sustained.
F. Capital Gain
Gains on the sale of property are taxable under section 61,
and the gain is computed by reference to the excess of the amount
realized over the adjusted basis provided in section 1011. See
sec. 1001. We must determine whether petitioner reported the
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