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$750,000 and that the equipment, vehicles, and bulldozer on the
ranch had a market value of approximately $335,000.
Petitioners have never realized a profit from their cattle
ranch activity. On their joint Federal income tax returns for
1993, 1994, and 1995, petitioners claimed ordinary expense
deductions relating to the cattle ranch activity, and they
claimed depreciation deductions relating to a house, a cabin, a
mobile home, and other improvements and equipment located and
used on the ranch. The schedule below reflects the gross
receipts, expenses, depreciation, and net losses relating to
petitioners’ cattle ranch activity that were reported on
petitioners’ joint Federal income tax returns for 1983 through
1997:
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