- 11 - quarter horses. He sold some quarter horses to petitioners. Steven Mobley (Mobley), a certified public accountant, prepared petitioners’ income tax returns for 1993 through 1996. Mobley gave petitioners tax advice for their horse activity. Alderson and Mobley did not advise petitioners how to make their horse activity profitable. 7. Petitioners’ Personal Pleasure From Their Horse Activity Petitioner gets personal pleasure from raising, training, and showing horses. She enjoys going to horse shows and seeing her horses do well. Mr. Strickland gets pleasure from petitioner’s and Amy Stenger’s success with horses and likes to work with the foals. D. Horse Income and Expenses Petitioners reported the following on their Schedules C (Profit and Loss) for their horse activity: Income 1993 1994 1995 1996 Total Sale of foals $1,700 $1,700 Boarding 400 $10,995 11,395 Show winnings $250 276 526 Riding lessons 160 60 220 Horse leasing 175 2,280 2,455 Gross income 0 410 2,611 13,275 16,296 Expenses Total Depreciation 1,883 7,190 12,790 14,036 35,899 Other 7,180 12,887 20,819 29,189 70,075 Total expenses 9,063 20,077 33,609 43,225 105,974 Net loss (9,063)(19,667) (30,998) (29,950) (89,678)Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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