- 12 - activity would become profitable. They performed a detailed analysis of their horse activity. Petitioner did not have such plans. He has not prepared a profit plan for his horse activity. He did not prepare any written analysis in order to determine how he could make a profit or what he would have to do to break even. Petitioner has not consulted with persons with expertise regarding the financial aspects of his horse activity. Petitioner testified that his current goal is to continue his horse activity but to do so more efficiently. Petitioner admitted at trial that he will never be able to recoup what he has spent on his activity thus far. Some of petitioner’s actions seem to run contrary to a profit objective. Petitioner testified that the average commission paid on the sale of a horse is 10 to 15 percent, and that is what he would pay to persons other than Mr. Dahart. Petitioner testified that he would pay Mr. Dahart commissions as high as 50 percent. When petitioner sold La Quintina and Lucy in Disguise, he paid Mr. Dahart a 50-percent commission on each sale. When petitioner sold Pro Gato8 for $47,500, he paid Mr. Dahart a $19,000 or 40-percent commission, and he also paid 8The contract was prepared on Arabian Crossings’ letterhead that included both the names of petitioner and Alan Dahart. However, petitioner testified that he and Mr. Dahart did not jointly own any horses.Page: Previous 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 Next
Last modified: May 25, 2011