-9- $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:Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011